May Coffee appears to be building a bottom in a range between a pair of old bottoms at $1.05 and $1.00. Production issues are more likely to be bullish later in the year. Cheap prices are causing producers to hold back crop. A weaker Dollar is needed to trigger a breakout rally to the upside.

After finding support at a key 50% price, May Sugar seems poised to continue its rally. Global production is expected to be down in both India and China but some traders feel that Brazil will be able to cover the shortfall especially if demand is down for sugar used in bio fuel production. Like Cocoa and Coffee, the Sugar market needs to see a drop in the Dollar lead to increased demand. Without demand this market is likely to remain firm but range bound.

Speculators are supporting May Cotton and helping to build a support base but the lack of demand is keeping this market in a holding pattern above the $40.00 mark. As long as consumers continue to curtail spending for clothing, look for demand for cotton fiber to be down. Both domestic demand and global demand are expected to remain low as long as the global recession continues to worsen.