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Softs Update


OJ:

What can I say, but that ball went over the fence in fair territory!

It's not often that we can slam one that far and that deep, but 1500 points just feels so good. Those of you that have options and not the futures look for Friday to exit and all futures traders "Take Profits Now".



Cotton:

We offset our long cotton today in front of the Prospective Planting report due out in the morning this Friday. We made some good money on this little rally but I want to impart to you that you never carry a position into a major report. This is a quick way to make a new friend called the margin clerk. Remember, we are here to make money by limiting risk.

Sugar:

We're still long from 1020 with stops at 980 and the chart looks awful. All I can say to you is a reprieve should be in order with crude rallying $5.00 dollars. If sugar takes us out, it is pretty well done and Bio-fuel or not, this market is cooked and will blow taps over body. I will do a projections study to lower levels which Chris Miller will post for me on Fast Break.

Coffee: Look for lower levels to buy.

In the next 5-10 days of trading we should see lower levels that should be bought. Early April is a great time to own this crop. We all know what is coming in and the price will reflect it now and then any good news leaning towards consumption will make us some good money to the upside. Call in for support points. Also option writers think about writing puts very soon.

Cocoa:

We have owned cocoa for a long time now and still own the trade. I told you about a month ago that low oil yields in the bean pod have forced the dark chocolate blenders to pay up for the better grade of cocoa to blend for exports. Move your stops up to cover profits.

NEVER LET A WINNER BECOME A LOSER!


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Pete Thomas has been quoted in Barron's, the business section of the Chicago Tribune, and Bloomberg. He is a regular contributor to Futures Magazine and has been featured in FutureSource FastBreak "Ask an Expert" this year. His weekly contribution to the RJO Futures weekly newsletter, "Pete's Corner," covers the New York Softs Markets in depth, complete with trade recommendations. Mr. Thomas also handles managed accounts as a Senior Broker at RJO Futures. With his industry background of thirty five years, both on and off the trading floor, Mr. Thomas is a natural choice for both the new and veteran trader seeking a broker assisted account.

Pete Thomas can be contacted at pthomas@rjofutures.com or by calling 888.894.6529 or 312.373.5392.

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