Alaron Softs Comment

CHICAGO - Jun 4/08 - SNS -- Following is the orange juice, cotton and coffee comment from Alaron Trading Corp.

July OJ closed slightly higher today but stayed inside the previous session's range. The market was able to hold yesterday's high of 114.00. Prices have been on a steady downtrend since the beginning of May. The market found a bottom as a contract low was made of 103.75. Short-covering pushed prices higher at the end of May and carried into June. The hurricane season has officially begun as the first tropical storm hit i this past weekend. This period will run through mid-to late October. Traders will monitor the weather for any storms/hurricanes that may develop and affect the Florida orange-growing region. The period when Florida usually gets affected with hurricane type storms is from August through October. Another reason why prices rebounded last week is because OJ is fairly priced, based on the current supply and demand. In addition, OJ is still undervalued in relation to other commodities, such as the grains, crude oil, and metal markets. If there isn't any news to move this market, we could see prices work its way into a trading range. Spread trading will be active in the next couple of weeks ahead of first notice day for the July contract on 7/1. Support for July is at 109.50-110.00. Resistance is at 113.00.

Boyd Cruel

Alaron Research Team

800.563.9510

bcruel@alaron.com

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