Coffee continues to hover near the contract highs and is worthy of put accumulation at these levels. Cocoa is at a fresh contract high as well and is rallying on fears of a sustained export ban in the Ivory Coast. This is a truly historic opportunity to get short cocoa as a top is anticipated and the downside fallout could be monumental. Cotton is making another attempt, its 3rd since the initial breakout rally, of reversing a sharp selloff to hit fresh highs. I do not believe cotton has it in it to make another major move higher, but then again I did not suspect that had it in it to rally last month either. Sustained buying is occurring because of a real shortage of supply, and if real delivery is needed then epic short covering and price surges have little choice but to happen and run until the buying demand is exhausted. When will the buying demand be exhausted? I believe there is a real likelihood that the high is already in and this current attempt to rally will be met with strong selling well below 208 on the futures. OJ continues to make new highs but is fast approaching critical resistance at 190. If broken the market has little technically stopping a run to the 2007 highs of 210.
source: http://www.fxstreet.com/technical/market-view/the-weekend-commodities-review0109/2011/02/28/
