Winnipeg, MB, May 26, 2004 (Resource News International via COMTEX) --

COFFEE

Winnipeg, MB, May 26, 2004 (Resource News) - Coffee futures at the Coffee, Sugar and Cocoa Exchange in New York saw increases during the week ended May 26, as commodity fund buying helped boost prices, said sources.

Boyd Cruel, a softs analyst with Alaron thought closes above 80 US cents per pound in the nearby Jly contract would likely generate some follow-through demand. Cruel added that with Brazil entering it's winter season the market will be watching for any frost concerns out of the country.

The US is heading into a long weekend and no one want's to be caught short the market, said Cruel, "just in case there is a freeze." US markets will be closed Monday, May 31, for Memorial Day.

Resistance in Jly coffee is seen at the highs of 82.00 to 82.15 cents, said Cruel. He placed nearby support in the month at 80.00 cents and then at 78.00 cents.

COCOA

New York cocoa futures saw some strength in the past week, supported by speculative buying and a weaker US dollar. However, the nearby futures have been unable to break through the US$1,400 per metric ton level. Sources thought a move above US$1,400 could trigger some buyer interest.

Cocoa will probably trade sideways to lower in the near future, said Cruel. He thought the US long weekend would result in a lack of significant volumes. In addition, with a lack of fresh fundamental news to move the cocoa market, Cruel thought Jly cocoa could drop to test the recent low of US$1,299.

SUGAR

World raw sugar futures at the Coffee, Sugar and Cocoa Exchange rallied to three-week highs during the past week, supported by commodity fund buying and short covering.

Technically speaking, the Jly contract has tested the 7 US cent per pound level. However, demand has only come from routine customers, said Cruel. "If we don't get any new demand coming in at these higher levels we will probably fall from here," said Cruel who thought the prices could drop to 6.25 cents.

Expectations for a large Brazilian crop, which is currently being harvested, should weigh on values, said sources. In addition, the funds and speculators hold a sizeable long position, and long liquidation could add to any downward pressure.

COTTON

New York cotton futures weakened during the past week, pressured by speculative selling and a lack of trade demand. One trader said commodity funds and locals accounted for most of the activity.

Cotton plantings have been moving ahead of schedule, which has also put some downward pressure on the market, said sources.

The USDA releases it's weekly export sales data on May 27. Market sources anticipate strong sales in a range from 60,000 to 120,000 bales. However, the cotton market has ignored the data in recent weeks.

Technically speaking, resistance in the Jly contract is seen at 63.00 cents, with support at 61.80 cents.

FCOJ

Frozen concentrated orange juice futures were steady to slightly higher on the week. The market has been consolidating around 55.00 cents in the Jly contract since hitting the contract low of 54.20 cents.

Trade in the commodity was light as the market remains relatively weak. Sources thought there was still more downside potential in orange juice as large supplies from Florida and Brazil continue to pressure the market.

Resistance in Jly orange juice is seen at 55.50 cents, with support at 54.40 cents.

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