Markets

MORNING SOFTS COMMENTS

COTTON

General Comments: Futures closed lower Friday on what appeared to be speculative selling, although buying tied to poor weather here in the US was noted as well. Dry weather in Texas growing areas provided support for new crop Cotton futures as it has become hard to get the Cotton planted. Western Texas, where a large percentage of all US Cotton is grown, has been very dry, and there are no forecasts for much relief, if any, through this weekend. Eastern areas have had some precipitation in the last week or so, but it remains too dry in many growing areas of the Southeast. Delta areas are turning warm ad dry for this week. In fact, most areas look to be hot and sunny this week in the US. World conditions seem better, although drought is a feature in China and parts of Europe. Charts show trends are still trying to turn up in July, but up in new crops months.

Overnight News: The Delta and Southeast will be dry. Temperatures will average above normal. Texas will be mostly dry. Temperatures will average above normal. The USDA average spot price is now 161.16 ct/lb. ICE said that certified Cotton stocks are now 0.043 million bales, from 0.043 million yesterday.

Chart Trends: Trends in Cotton are mixed to up with objectives of 175.00 July. Support is at 159.00, 157.00, and 155.00 May, with resistance of 166.00, 172.00, and 175.00 May.

Disaggregated Commitments of Traders- Options and Futures Combined Positions as of May 31, 2011

: Reportable Positions

:-------------------------------------------------------------------------------------------------------------

: Producer/Merchant : : :

: Processor/User : Swap Dealers : Managed Money : Other Reportables

: Long : Short : Long : Short :Spreading: Long : Short :Spreading: Long : Short :Spreading

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COTTON NO. 2 - ICE FUTURES U.S. (CONTRACTS OF 50,000 POUNDS)

CFTC Code #033661 Open Interest is 304,256

: Positions

: 65,551 140,679 43,727 17,572 23,950 37,771 2,175 21,058 11,704 4,138 80,213

: Changes from: May 24, 2011

: -6,114 -4,874 -459 2,963 4,292 1,817 -2,042 1,220 261 -159 6

: Percent of Open Interest Represented by Each Category of Trader

: 21.5 46.2 14.4 5.8 7.9 12.4 0.7 6.9 3.8 1.4 26.4

: Number of Traders in Each Category Total Traders: 242

: 36 45 18 14 21 73 12 35 53 23 46

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FCOJ

General Comments: Futures closed lower Friday, with most weakness in the front months as traders start to move out of July positions. Futures rallied late last week on forecasts for a more active hurricane season than normal, but had no reaction to forecasts from Brazil calling for a higher than normal possibility of a freeze this year as most production areas would not get hurt. Florida remains mostly warm and dry, with no forecasts for significant rains in sight. Drought still affects a large portion of the citrus producing area, but crops are called in mostly good condition at this time due to irrigation. Fruit is developing and small fruit is visible on the trees. The fruit is called in good condition due to irrigation. Seasonal forecasts call for a more active than normal Atlantic hurricane season. Charts show that the market is trying to decide on the next move.

Overnight News: Florida weather forecasts call for mostly dry conditions, but afternoon showers are possible. Temperatures will average near to above normal.

Chart Trends: Trends in FCOJ are mixed. Support is at 181.00, 179.00, and 177.00 July, with resistance at 186.00, 188.00, and 191.00 July.

Disaggregated Commitments of Traders- Options and Futures Combined Positions as of May 31, 2011

: Reportable Positions

:-------------------------------------------------------------------------------------------------------------

: Producer/Merchant : : :

: Processor/User : Swap Dealers : Managed Money : Other Reportables

: Long : Short : Long : Short :Spreading: Long : Short :Spreading: Long : Short :Spreading

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FRZN CONCENTRATED ORANGE JUICE - ICE FUTURES U.S. (CONTRACTS OF 15,000 POUNDS)

CFTC Code #040701 Open Interest is 44,592

: Positions

: 7,187 32,952 4,379 1,990 33 19,028 93 432 2,115 760 6,661

: Changes from: May 24, 2011

: 288 1,377 -12 25 17 704 0 -74 552 140 -138

: Percent of Open Interest Represented by Each Category of Trader

: 16.1 73.9 9.8 4.5 0.1 42.7 0.2 1.0 4.7 1.7 14.9

: Number of Traders in Each Category Total Traders: 126

: 16 22 7 5 . 48 . . 25 15 19

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COFFEE

General Comments: Futures were mixed yesterday. Nearby months had trouble as the ICO announced bigger than expected April exports, but deferred months rallied on wire stories that a higher than normal possibility for a freeze is forecast for Brazil this year. Producers are still not selling much, but there seems to be an uptick in offers now as some producers feel they have missed the market. Fundamentals continue to suggest strong prices overall for the longer term. Talk of lower Mitaca crop production in Colombia after recent big rains and the potential for a freeze in Brazil is offering reasons for speculators to buy. The focus remains on tight supplies now and into next year. Traders generally expect tight supplies to continue through the next crop year due to lower production in Brazil and for high prices to continue as well. Roasters increased retail prices here last week, and there could be some demand loss. Chart show that trends are sideways for the short term.

Overnight News: Certified stocks are higher today and are about 1.668 million bags. The ICO composite price is now 224.31 ct/lb. Brazil should be mostly dry. Temperatures will average near to above normal this week, but near to below normal this weekend.

Chart Trends: Trends in New York are mixed. Support is at 263.00, 260.00, and 259.00 July, and resistance is at 271.00, 272.00, and 274.00 July. Trends in London are mixed. Support is at 2590, 2570, and 2540 July, and resistance is at 2625, 2640, and 2670 July. Trends in Sao Paulo are mixed. Support is at 325.50, 317.00, and 315.00 September, and resistance is at 340.00, 346.00, and 348.00 September.

Disaggregated Commitments of Traders- Options and Futures Combined Positions as of May 31, 2011

: Reportable Positions

:-------------------------------------------------------------------------------------------------------------

: Producer/Merchant : : :

: Processor/User : Swap Dealers : Managed Money : Other Reportables

: Long : Short : Long : Short :Spreading: Long : Short :Spreading: Long : Short :Spreading

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COFFEE C - ICE FUTURES U.S. (CONTRACTS OF 37,500 POUNDS)

CFTC Code #083731 Open Interest is 174,422

: Positions

: 42,254 82,191 32,595 8,699 10,409 24,887 8,772 11,866 1,408 3,205 41,854

: Changes from: May 24, 2011

: -4,671 -3,676 -544 650 2,365 64 -769 784 557 -125 418

: Percent of Open Interest Represented by Each Category of Trader

: 24.2 47.1 18.7 5.0 6.0 14.3 5.0 6.8 0.8 1.8 24.0

: Number of Traders in Each Category Total Traders: 346

: 87 100 21 13 20 76 37 53 47 44 65

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SUGAR

General Comments: Futures closed higher in New York and in London Friday, with nearby months leading the way on new end user demand. Demand has been increasing as many Middle Eastern countries get ready for Ramadan. Physicals premiums are stronger for both Raw and White Sugar. There is also talk of shipping and harvest delays from Brazil that could create a short term supply crunch. Bears keep pointing to increased supplies around the world and no demand this year from India as reasons to see futures move lower over time. The harvest conditions seem good at this time in Brazil and also in Thailand, and production ideas in both countries are big. India continues to offer, although in small amounts for now.

Overnight News: Mostly dry conditions are expected in Brazil. Temperatures should be near to above normal.

Chart Trends: Trends in New York are up with objectives of 2535 and 2570 July. Support is at 2360, 2340, and 2280 July, and resistance is at 2400, 2430, and 2470 July. Trends in London are up with no objectives. Support is at 692.00, 684.00, and 679.00 August, and resistance is at 706.00, 718.00, and 740.00 August.

Disaggregated Commitments of Traders- Options and Futures Combined Positions as of May 31, 2011

: Reportable Positions

:-------------------------------------------------------------------------------------------------------------

: Producer/Merchant : : :

: Processor/User : Swap Dealers : Managed Money : Other Reportables

: Long : Short : Long : Short :Spreading: Long : Short :Spreading: Long : Short :Spreading

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SUGAR NO. 11 - ICE FUTURES U.S. (CONTRACTS OF 112,000 POUNDS)

CFTC Code #080732 Open Interest is 789,907

: Positions

: 180,908 349,732 143,858 95,096 62,315 130,110 37,129 45,863 34,192 9,183 120,365

: Changes from: May 24, 2011

: 6,067 15,071 -56 3,323 4,290 3,117 936 1,422 1,245 1,346 8,874

: Percent of Open Interest Represented by Each Category of Trader

: 22.9 44.3 18.2 12.0 7.9 16.5 4.7 5.8 4.3 1.2 15.2

: Number of Traders in Each Category Total Traders: 249

: 62 65 17 15 26 50 20 36 39 32 61

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COCOA

General Comments: Futures were lower in New York and in London and made new lows for the move. Ivory Coast and western African selling pressure remains a feature of the market, but prices have dropped a lot already. There is talk that much of the reaction to the increased flow of Cocoa from Ivory Coast is already part of the market. Ghana is also exporting in a big way and expects to purchase 1.0 million tons from producers this year. It is on track to get to that goal. Overall ideas are that production there and in the rest of West Africa are improved this year due to the good rains and generally favorable weather patterns. The mid crop is supposed to be big this year in all countries in West Africa and will probably get exported quickly now. Trends are still down.

Overnight News: Scattered showers and storms are expected in West Africa. Temperatures will average above normal. ICE stocks are lower today and are now about 3.270 million bags.

Chart Trends: Trends in New York are down with objectives of 2750 July. Support is at 2860, 2785, and 2770 July, with resistance at 2900, 2950, and 3020 July. Trends in London are down with no objectives. Support is at 1770, 1740, and 1710 July, with resistance at 1810, 1850, and 1860 July.

Disaggregated Commitments of Traders- Options and Futures Combined Positions as of May 31, 2011

: Reportable Positions

:-------------------------------------------------------------------------------------------------------------

: Producer/Merchant : : :

: Processor/User : Swap Dealers : Managed Money : Other Reportables

: Long : Short : Long : Short :Spreading: Long : Short :Spreading: Long : Short :Spreading

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COCOA - ICE FUTURES U.S. (CONTRACTS OF 10 METRIC TONS)

CFTC Code #073732 Open Interest is 196,128

: Positions

: 75,344 96,172 21,764 8,789 8,549 33,478 29,723 17,941 4,352 1,898 23,569

: Changes from: May 24, 2011

: 2,301 310 -589 50 2,587 -2,336 -1,729 506 207 -70 147

: Percent of Open Interest Represented by Each Category of Trader

: 38.4 49.0 11.1 4.5 4.4 17.1 15.2 9.1 2.2 1.0 12.0

: Number of Traders in Each Category Total Traders: 177

: 36 39 18 7 15 38 32 24 17 20 25

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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