Commodities have been trying to extend the rally we have seen but besides Crude Oil, most commodities are quite a bit below their highs. We are looking for a consolidation range to become the new near term norm. We are expecting a lot of two sided chop with little to no directional bias for some time.
 

OJ is still is as wild as ever and after taking some nice profits out of this market these last few weeks we are moving on until we get a clear break out form this consolidation zone. Given all the false starts we have had, I would suggest waiting until the market closes three days in a row at higher prices before chasing the long side. Cocoa is trying to establish a consolidation zone between 2600-2800 we expect this range to hold for the near term and will begin trading this range once we see confirmation that it will hold. Coffee has seen a lot of volatility lately and we are looking for this to increase even more in the near term. We are light buyers below 130 and sellers above 140 but all of these will be at about 25% or normal position size due to the extreme nature of this market. Sugar did not break through 13 as we forecasted last week and is now heading back to the lower end of the range near 11.50. We see this market ranging between these two points in the near term. Cotton is testing support near the 70 level and we are light buyers here with stops below 66 targeting a move back to 80.

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