It is obvious that during the summer doldrums it is easier for big orders to push prices around. We saw this happen yesterday, Tuesday the 21st, in cotton. We are seeing it again in Cocoa and coffee today. Is sugar next?

Regardless of the declines, regular subscribers should know that I had been calling for a 200-300 point drop in cotton, I remain friendly long term towards cotton as well as coffee. Coffee got flushed today when a large 400 lot order hit stops and KCU dropped quickly to 116.35, less than a minute later it was back to 119. Go figure….I also believe that sugar is headed higher long term, but that market may be overdo for a shakeout. Cocoa is far too crazy and thin.

The net impact can change charts considerably, so be aware of the impact that large orders can have in these thin summer markets.

This entry was posted on Wednesday, July 22nd, 2009 at 10:54 am and is filed under Softs. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.