This article is brought to you by:
CONSENSUS

SIEGEL TRADING COMPANY, INC.
118 North Clinton, Chicago, Illinois
800-422-9903

(March 7, 2002) COCOA: MAY COCOA--The posting of yet another new contract high places cocoa at its best level since mid-November1998. Although no fresh news surfaced this week to support the continued upward trend, the visible lack of producer hedge selling and strength in the London cash market was enough to keep the buyers active and prices rising. Rumors that Brazil had to import cocoa to meet their commitments was a definite plus for the bulls and served as proof to some that South American cocoa production, plagued by disease, remains dismal. Many analysts continue to call for a long term top in this market and a considerable price retracement. However, traders remain focused on the multi-year supply/demand deficit and the still unanswered question as to the size of the Ivory Coast main crop. Accordingly, with cocoa prices still well under the 1997 high and the funds still active buyers, it would be foolish to rule out seeing further gains.

Hosted by:
CONSENSUS, INC. AND INVESTORS CO-OP
P.O. Box 520526
Independence, MO 64052-0526
816-373-3700
Fax: 816-373-3701
editor@consensus-inc.com