Market Commentary

Currencies | Energy | Food | Grains | Indexes | Interest | Livestock | Metals

FOOD & FIBER

July coffee closed lower on Monday as it extended the decline off May's high. The low-range close set the stage for a steady to lower opening on Tuesday. Stochastics and the RSI remain bearish signaling that sideways to lower prices are possible near-term. If July extends the aforementioned decline, April's low crossing at 13.27 is the next downside target. Closes above the 10-day moving average crossing at 14.21 would confirm that a short-term low has been posted.

July cocoa closed higher on Monday. The mid-range close sets the stage for a steady opening on Tuesday. Stochastics and the RSI are bearish signaling that sideways to lower prices are possible near-term. If July extends this month's decline, the 50% retracement level of the March-May rally crossing at 22.41 is July's next downside target. Closes above the 20-day moving average crossing at 23.54 are needed to confirm that a low has been posted.

July sugar closed lower on Monday as it extends this month's decline. The low-range close set the stage for a steady to lower opening on Tuesday. Stochastics and the RSI are oversold but remain neutral to bearish signaling that sideways to lower prices are possible. If July extends this year's decline, the 87% retracement level of the 2010-2011-rally crossing at 16.29 is the next downside target. Closes above the 20-day moving average crossing at 17.34 are needed to confirm that a short-term low has been posted.

July cotton closed lower on Monday and the low-range close sets the stage for a steady to lower opening on Tuesday. Stochastics and the RSI remain bearish signaling that sideways to lower prices are possible near-term. Closes below the reaction low crossing at 85.00 would confirm that a short-term top has been posted. If July renews the rally off April's low, the reaction high crossing at 91.58 is the next upside target.