Alaron Softs Comment

CHICAGO - Dec 5/08 - SNS -- Following is the orange juice, cotton and coffee comment from Alaron Trading Corp.

March cocoa has been trending higher since the middle of November. However, this week, the market has retraced some of these gains after it was able to hold last month's high of 2308. We have been seeing some buying on these breaks as the 2100 support level held. We have seen a contra-seasonal move in cocoa this year as prices normally move lower during this time as beans move into the marketing channels.  Breaks in this market may look to be bought as arrivals in the Ivory Coast have been coming in about one-third below last year's pace. There has also been talk that the quality of the beans may come in below average due to the dry weather. These issues will continue to provide underlying support. If the market continues to hold 2100 and we do not see an increase in arrivals, we could see the 2400 level tested. Support for March is at 21.00. Resistance is at 2240-2250.

Boyd Cruel

Alaron Research Team

800.563.9510

bcruel@alaron.com

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