The negative pressure prices have experienced have resulted in turning bull markets in coffee and cotton into bears. Both have had sizable prices drops since last Thursday and while you might consider those two markets due for a bounce, what if one doesn’t happen? Uncomfortable longs ought to be seeking to use any bounce to get out. If prices cannot firm then they may abandon longs anyway. Shorts, while they may be inclined to cover on strength would be sure to re-sell on further weakness.

So, Ias you can tell I ‘m not thrilled about being long either of those two markets, the very same which I strongly felt held upside opportunities not more than a week ago. For more on why, see my morning comments, Jurgens

This entry was posted on Tuesday, August 18th, 2009 at 9:06 pm 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.