jackfutu18
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The Softs Pitguru Review for the week of May 3rd, 2010
It's ironic (and scary) to watch as analysts and the news media go on about Europe's debt crisis while our own massive debt at home increases and remains in the background off the stage....Wonder what impact this will have on the dollar this week? The Goldman situation is grabbing more attention and may help shape policy. Anyway the soft markets saw cotton and sugar prices fall, while cocoa and coffee prices held support and worked higher to end the week with gains. Look for more of the same this coming week.
Sugar prices continue to drop, falling farther than expected. Just three months ago they were worrying about tight supplies. Now the talk is of surplus. Brazil's Ag Ministry, Conab, predicted that sugar production will be up 17% in 2010-2011 setting a record high 38.7 million tons. 1 Deliveries Friday showed Cargill the big taker (5,607), Deliverers: Prudential - 1,882 BNP (Bunge) - 1,658 Newedge - 334, ADM - 1,734
There have been some significant developments regarding cotton coming out of India this past week concerning their export policies. Export duties have received the ability from Parliament to rise and be adjusted swiftly by the Textile Ministry. In addition policy changes have taken place with the suspension of exports at the top of that list. All of this serves to shift the focus upon the US export market and what action to expect from China.
Coffee prices are at a critical juncture in terms of choosing to continue to hold above short term moving averages, (last week they held key support), so the trend may be changing. Regular readers know that I have been friendly to this market, so it'll be interesting to see what develops. Like to see what transpires if we can see KCN reach above 140.
