FOOD Commentary& FIBER http://quotes.ino.com/exchanges/?c=food
March coffee closed lower on Tuesday and the low-range close sets the stage for a steady to lower opening on Wednesday. Stochastics and the RSI are oversold, diverging but are bearish signaling that additional weakness is possible near-term. If March extends the decline off December's high, September's low crossing at 12.28 is the next downside target. Closes above the 20-day moving average crossing at 13.65 are needed to confirm that a short-term low has been posted.
March cocoa closed lower on Tuesday and the mid-range close sets the stage for a steady opening on Wednesday. Stochastics and the RSI are oversold but remain neutral to bearish signaling that sideways to lower prices are possible near-term. If March extends this year's decline, the 38% retracement level of the 2008-2009-rally crossing at 29.32 is the next downside target. Closes above the 20-day moving average crossing at 32.62 are needed to confirm that a low has been posted.
March sugar closed higher due to short covering on Tuesday as it extended Monday's rebound off the 25% retracement level of the 2009-2010-rally crossing at 25.80. The low-range close set the stage for a steady to lower opening on Wednesday. Stochastics and the RSI remain bearish signaling that sideways to lower prices are possible near-term. If March extends last week's decline, the 38% retracement level of the 2009-2010-rally crossing at 23.35 is the next downside target. Closes above the 20-day moving average crossing at 28.39 would temper the near-term bearish outlook.
March cotton closed limit up on Tuesday following today's bullish supply-demand report. The USDA raised its outlook for 2009-10 cotton exports to 12 million bales from 11 million bales last month. The export adjustment was regarded as very bullish to the market, which resulted in today's limit up rally. The limit up close sets the stage for a steady to higher opening on Wednesday. Stochastics and the RSI are bullish signaling that sideways to higher prices are possible near-term. If March extends today's rally, the reaction high crossing at 74.49 is the next upside target.
