The bear trend in Sugar prices did develop as I indicated in my last newsletter. We are nearing long term support at the 500 level with no technical signs of slowing down. I have issued sell recommendations on any rally to resistance levels as I believe that Sugar prices will consolidate between the 500 and 650 range for a period of a number of weeks. Coffee prices exploded once again this week as the Coffee market traded at new 18 month highs. The volatility in the Coffee has been extreme and all new and smaller traders should consider bypassing this market.
Cotton prices continue to struggle at deep support with very little signs of life.
We do have long term divergence on the daily and weekly charts but we do need technical confirmation before leaping on board. I'll advise long positions on the daily hotline after I see strong confirmation that we are headed towards higher prices. Lumber sits atop short term support as of this writing after staging an impressive 5000 point rally since October 1st. The failure at the 360 level in conjunction with slow stochastics giving sell signals leads me to warn long traders of an impending sell off. Lumber is a thinly traded market so traders should use price orders.