Alaron Soft Commodity Comment

CHICAGO - Aug 14/06 - SNS -- Following is the cocoa, sugar, orange juice and cotton futures comment from Alaron Trading Corp.

COCOA: (Trading Hours: 7:00am-10:50am CST) (Report, as of 8/4 close)

The market closed lower today on speculative selling late in the session. The sell-off can also be attributed to September option expiration today as prices moved towards the 1500 strike. Prices were firmer early in the session as it worked its way towards an upside gap at 1556 basis September. Trade buying has been supporting this market under 1500. There has been little fundamental news in this market. The Ivory Coast crop will begin to be harvested in September and traders will watch for any tensions that may arise there. Support for September is 1500. Resistance is at 1530.

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The market closed slightly lower today as prices stayed inside the previous session's range. Yesterday's rally was technical in nature as stops were hit above June 2006 high of 105.90 basis September. Origin selling capped a lid to yesterday's rally. The freeze period in the Brazilian coffee-growing regions is over and the crop escaped any threats of a frost which could harm it. The Brazilian harvest continues and is over 50% completed. Stocks in certified warehouses as of 8/4, were at 3,382,663 bags with 142,528 bags waiting to be graded. Support for September comes in at 104.00. Resistance is at 107.00.

SUGAR: (Trading Hours: 8:00am-11:00am CST) (Report, as of 8/4 close)

The market continued its bounce off the monthly low made yesterday of 14.10 basis October. Prices are working its way towards an upside gap of 14.51. The market became oversold after this recent sell-off. This market may continue this downtrend after a near-term correction with a possible test of the yearly low of 13.65. The market has been pressured on talks of large supplies.from Brazil, India, and Thailand and the lack of physical buying. We may see this market remain under pressure until we see some buying activity. Support for October is at 14.10. Resistance is at 14.50.

OJ: (Trading Hours: 9:00am-12:30pm CST) (Report, as of 8/4 close)

Prices were firmer today after holding support of 168.50 basis September. The market rallied earlier in the week as Tropical Storm Chris developed and was forecasted to move towards Florida. However, it shifted away from Florida and also weakened. This pressured the market to give back all of its gains from earlier in the week .However, we did not see a sell-off going into the weekend as Chris could possibly shift again towards Florida. The market will continue to have underlying support as we are still in the hurricane season. The next major report for this market will be released later this month when we get private estimates for the next Florida crop. Last month, the USDA lowered its estimate of the current Florida crop 2 million boxes. Some traders were expecting a cut as high as 6 million boxes. Support for September is at 168.50. Resistance is at 174.00.

COTTON: (Trading Hours: 9:30am-1:15pm CST) (Report, as of 7/26 close)

The market closed slightly lower as prices stayed inside the previous session's range. The market has been consolidating since a monthly high was posted this week of 56.35 basis December. The market has been supported by the deterioration of the Texas crop(which is the largest producer of cotton in the U.S.) due to hot and dry weather. The U.S. crop could be significantly lower than last year. Early estimates for the U.S. crop are between 18-20 million bales, which would be about 3-6 million bales lower than last year's crop. Traders will conitnue to montior the weather and the weekly crop condition report released by the USDA. (For a more detailed weather update, please log on to www.wxrisk.com ) Support for December is at 54.70-55.00. Resistance is at 56.00.

Boyd Cruel

Alaron Research Team

800.216.1491

bcruel@alaron.com

www.alaron.com

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