Alaron Softs Comment

CHICAGO - Apr 10/08 - SNS -- Following is the orange juice, cotton and coffee comment from Alaron Trading Corp.

The technical bounce in the cocoa market continued today as the May contract pushed to a 3-week high of 2526. In the last few weeks, cocoa prices retraced from the contract high of 2971. The market pulled back to the 61.8% Fibonacci level of 2225-2230. Speculative buying supported the market near this level. Once the equity markets began to stabilize at the end of the  1st quarter and into the start of the 2nd quarter, commodity funds began to get more active. Stops were hit above 2400 today and ran into resistance at 2500. This market is a bit overbought so we could see this 2500 level hold in the near-term. In order to see more fund buying, we will need to see a close above 2500. We have entered the slow period for this market as the Ivory Coast's mid-crop harvest is near complete. The technicals  should lead the way due to the lack of news. Spread trading will be active ahead of first notice day for the May contract on 4/17. Support for May is at 2400. Resistance is at 2500-2525.

Boyd Cruel

Alaron Research Team

800.563.9510

bcruel@alaron.com

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