wmeubank@ocp.kcmo.com
THE WINDY CITY TRADER
P.O. Box 1673, Chicago, Illinois
(December 2, 1997) COTTON: Cotton may see some minor weakness due to lower exports. We are starting to see a slight increase in demand which we expect to increase dramatically after the first of the year. Cocoa continues to drift lower. The problem with cocoa is more of a case of a lack of buyers rather than any heavy selling. As longs have liquidated their contracts, there has been little fresh buying to rally. We have mentioned before that the market was rallying on El Nino speculation. Remember–El Nino = 2000. No El Nino = 1300. All fundamental news in sugar has been bearish; helpful rains in Indonesia, record sugar cane harvesting in Australia; excellent planting progress in Cuba and Mexico. Why does this market rally. Two words: Buy stops. Let this market join orange juice as another to stay away from.
Stephen Connell and William Frejlich
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