Alaron Soft Commodity Comment

CHICAGO - Nov 7/06 - 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 11/7 close)

The market had its highest close in 2 weeks as the December contract closed above the 1500 level. The market has been supported by the tension that has been brewing in the Ivory Coast. A UN Resolution took away the military control from the President and gave it to the Prime Minister. This led to a mob killing of a couple of members from a Loyalist Group. There have been no reports of delays in the movement of cocoa beans due to this tension. However, traders will continue to monitor this situation. The movement of beans has been slow but this could be due to farmers smuggling beans out of the Ivory Coast and into countries that are paying more for cocoa beans. The seasonal trend for this market is lower during this time of the year. If supplies begin moving, we will see more origin selling present. In the next couple of weeks, spread trading will be active ahead of first notice day for the December contract on 11/15. Support for December is 1500. Resistance is at 1530.

COFFEE: (Trading Hours: 8:15am-11:30am CST) (Report, as of 11/7 close)

The market pushed to a new monthly high today of 114.25 basis December. However, there was no follow-through buying at this level and prices closed lower for the day. Origin selling has been present the last couple of sessions near resistance of 114.00. Funds and speculators have been buyers. There are growing concerns that the current Vietnam crop, which has just begun its harvest, may not be as large as originally estimated. In addition, there is a same sentiment towards next year's Brazilian crop. December options will be expiring this Friday and we could just stay between the 110 and 115 strike prices. Stocks in certified warehouses as of 11/7, were at 3,640,027 bags with 52,438 bags waiting to be graded. Spread trading will be active ahead of first notice day for the December contract on 11/20. Support for December comes in at 112.00. Resistance is at 114.00-114.25.

SUGAR: (Trading Hours: 8:00am-11:00am CST) (Report, as of 11/7 close)

The market was lower today as prices were unable to hold the gains from yesterday's rally before the close. In the last week, prices have been consolidating between 11.30-11.82 basis March. There is a double-bottom at 11.30. Prices could be setting up to break out one way or the other after this sideways trading. The cash market continues to be quiet and in order for prices to move higher, we will need to see more activity. The seasonal buy in this market does not occur until mid-November. Support for March is at 11.30. Resistance is at 11.80.

OJ: (Trading Hours: 9:00am-12:30pm CST) (Report, as of 11/7 close)

Prices were higher today as the market continued its technical bounce of yesterday's low of 192.60 basis January. The market retraced to this low after prices made a few attempts and failed to get above resistance of 200.00. Now that we have seen this bounce, the market is poised to re-test this level again. This is the seasonal time to buy as a weather premium gets built into the market. Trade and speculative buying continues to support this market. The cash market continues to have a premium over the futures market as supplies are tight. Supplies became even tighter after the USDA's Florida crop estimate of 135 million boxes last month. Support for January is at 195.00. Resistance is at 200.00.

COTTON: (Trading Hours: 9:30am-1:15pm CST) (Report, as of 11/7 close)

In the last week, the market moved higher as prices were able to hold support of 48.00 basis December. Prices are again re-testing ressitance of 50.00. Traders have been covering short positions ahead of the USDA's Crop Production/Supply and Demand Report, which wull be released this Thursday at 7:30am Central Time. Traders are expecting large supplies from the U.S. and China. Demand from China is expected to decline due to the increase in their production. The cotton harvest continues to progress and is 59% completed versus 61% last year. Support for December is at 48.00. Resistance is at 50.00-51.00.

Boyd Cruel

Alaron Research Team

800.216.1491

bcruel@alaron.com

www.alaron.com

DISCLAIMER: The information and data in this report were obtained from sources considered reliable. Their accuracy or completeness is not guaranteed and the giving of the same is not to be deemed as an offer or solicitation on our part with respect to the sale or purchase of any securities or commodities. Alaron Trading Corp. its officers, directors, employees and brokers may in the normal course of business have positions, which may or may not agree with the opinions expressed in this report. Any decision to purchase or sell as a result of the opinions expressed in this report will be the full responsibility of the person authorizing such transaction.

Information on this page is derived from third parties and is deemed to be reliable. STAT Communications Ltd. accepts no responsibility for errors, omissions or inaccuracies in any of the material presented on this web site. Opinions expressed on this web site are those of the respective individuals and/or institutions and do not represent the opinions of STAT Communications Ltd. or its management.