Wheat: Recently, the wheat market has stabilized into a sideways trading range. US wheat is competitive in price on the world market and the European Union continues to be watched closely for the quality of wheat that they hold in stockpiles. We believe that the EU is holding much lesser quality wheat at this time and will not be a dominant factor in export competition over the next six to nine months. However, to start a bullish up trend the US must continue to exceed government export expectations over the months ahead. Aggressive traders are advised to sell December Wheat 250 puts on a neutral to bullish world stock report on Friday. We continue to believe that this market will become the leader to the upside when the grain market stabilizes and prices the demand side of the equation over the supply side.

Soybeans: Surprisingly bean prices have held steady against corn and wheat prices during a month when most of the attention turns to the bean crop. Therefore, we must question the quality of the crop in the Western Corn Belt and the Delta. This will be an area of importance on the USDA report. Export sales remain solid and China continues to buy at all price levels, which is an optimistic sign for the future. The latest 6 to 10 day forecast shows hotter and dryer weather moving into the Midwest, which is yet, another supportive factor for prices. If the weather cooperates we see November bean prices working their way to the 430 area, however adverse weather could quickly change this scenario over the next couple of weeks. Currently we recommend scale down buying in the November beans starting at the 450 level.

Sugar: The market has recently consolidated into an almost perfect technical triangle pattern. This type of pattern usually results in a continuation of the trend, which would be higher. We continue to recommend buying two day breaks in this market and selling out at our next objective of 10.95 basis October.

Coffee: Coffee has been on the tumble in recent weeks after the slight freeze, which hit Brazil. Currently coffee is at new contract lows for the year as the market shrugs off possible damage to the crop and instead focuses on large supplies and the unwillingness of Indonesia to cut back its export pace. Coffee supplies remain large and without further weather scares the market will drift in a sideways to lower pattern.

Cocoa: After cocoa broke the 800 support level basis September the market has continued to reel lower. Many small specs were stopped out on this recent break and thus we would recommend large traders to start scale down buying at these levels. Once again rumors have surfaced that the Ivory Coast will meet on August 31st to institute an agenda to begin to burn 250,000 tons of lesser quality cocoa in an effort to stabilize prices. If this does become a reality look for the trade houses to begin buying at these 26 year lows. We highly recommend taking a long futures or options position at this time.

Cotton: Cotton prices have formed a long-term bottom on the daily chart with hot and dry weather concerns being the factor throughout the Delta. Producers in Texas have stated that the recent hot and dry weather has led to the crop ending its growth pattern one month earlier than normal. This means that Texas will need another one to two inches of rain over the next month for the crop to begin new growth, which is seasonally highly unlikely. We recommend selling cotton puts as the place to be forcing Mother Nature to do what is seasonally unlikely. Look to sell the December 61 and 60 puts on any two-day pullback in price.

Silver: Silver is now below the $5.00 level and is eying the $4.86 support level. We continue to recommend the purchase of silver on weakness, as we believe that the economy is stronger than expected. The CRB index has taken a breather but should continue to rally against equities over the next six months. This will only help the metals gain stability for a subsequent advance. Large traders are recommended to purchased December futures positions at these levels and add to the position every seven cents lower looking to take $350 profits on each contract purchased.

Gold: Gold has been on a slow decline over the past week working its way back to the $270 support level basis August. If technical support can hold at the $270 level for three consecutive days we would recommend buying futures or options looking for a $30 rally to the $300 resistance level. Long term if gold can close above the $300 level we could see a accelerated rally to the $330 level as many mines may begin to lift their hedges once again. The market consensus for gold is lower, however we continue to disagree looking for a strong rally in the weeks to come as producers start to lift their hedges.

Copper: We are now long September copper at 84.00 after a breakout of a long choppy sideways pattern. Continue to add contracts on two-day pullbacks with protective stops placed at 81.90. This has the look to be the next strong bull market on the charts for the nest six to nine months.

Crude Oil: Saudi Arabia has recently stated that it will step up its production of crude 500,000 barrels per day for the Western World in an effort to help combat high fuel prices. Recently it has been stated that not Saudi Arabia but OPEC as a whole will increase production of crude 500,000 barrels per day. Recently crude has rallied up to its yearly highs. If crude does indeed breakout to new highs we would recommend shorting looking for a pullback to the $28 level basis October.