OptionSellers.com in the Media

From Bloomberg Markets – MAY 05, 2017

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SOFTS: Cocoa Set for Weekly Gain; Open Interest Rises to Record

BY Marvin G. Perez (Published on Bloomberg Markets on MAY 05, 2017)

This week, price climbs 0.5%, set for first gain since March 24; futures slump 41% in past 12 months on projections for global surplus

NOTE: On May 3, aggregate futures open interest climbed to record 310,218 contracts, exchange data shows; in week ended April 25, net-short positions held by hedge funds rose to all-time high of 37,026 futures and options, government data showed on April 28

“We think cocoa has already reached the bottom,” James Cordier, founder of Optionsellers.com in Tampa, Fla., says in telephone interview

“The last several weeks of selling was mainly driven by speculative funds pushing the market down,” and “the fundamentals don’t justify these low prices”

“We think fair value is between $2,000 and $2,050, and there’s a good chance we will get there in the next week”

Bearish wagers “leave market vulnerable to short-covering rallies” amid weather risks associated with El Nino pattern later this year

NOTE: Cocoa processing rose in 1Q in Europe, Asia and North America

NOTE: Bloomberg Commodity Index rises 0.7% as energy prices rebound; earlier, gauge touched 12-month low

Arabica-coffee futures for July delivery fall 0.3% at $1.346 Raw-sugar futures for March delivery climb 0.5% to 15.44c/lb

Orange-juice futures for July delivery advance 0.8% to $1.47/lb

Cotton futures for July delivery drop 1% to 78.11c/lb

EARLIER: Cocoa Open Interest Reaches Record; Sugar Down 13th Week

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