Report Date: 28th Jan 2010

Global Services Division

Agro (ICE) - Cocoa

Trading Strategy (for Cocoa Mar’10 - applicable for 3-5 days - contract $per ton)
Buy/Sell Entry point(s) Liquidation
Futures Contract Entry Point Stop-Loss
[Advised on] Triggered on Objective
Cocoa
Sell 3315/3325 ----- 3235 3375
(ICE) Mar’10

ICE March cocoa futures reached the 9-week low of $3172 levels on Wednesday on the back of
economic uncertainty and weak demand. But the losses were parted towards the end of the
session and finally settled at 3268, after dealing in the range of 3172 and 3370.

Prices closed well below the trend line support signalling room for further drop in prices in the
coming sessions. On the lower side strong support is seen at 3100-3090, which also coincides
with the trend line support drawn from the March 2009 lows of 2169 levels.

As far as prices continue to hold above 3090 on daily closing basis will negate nay further drop in
prices. At the same time on the higher side initial resistance is seen at around 3300-3320 levels
and further above towards 3345 to 3375 levels.
Global Services Division

Agro (ICE) - Coffee

Trading Strategy (for Coffee Mar’10- applicable for 3-5 days – contract cents/lb)

Buy/Sell Entry point(s) Liquidation

Futures Contract Entry Point Stop-Loss
[Advised on] Triggered on Objective
Coffee
Stay away
(ICE) Mar’10

Stop-loss triggered for the given long position on Wednesday.

ICE futures U.S. Arabica coffee futures settled below the important support of 136 as well as the
intermediate trend line support signaling room for further weakness in the coming few session and
one cant rule out prices retesting the lower supports of 129-127 levels. On Wednesday prices
moved in the range of 133.35 and 139 and finally settled lower at 133.55 levels.

On the lower side strong support is seen at 132 and further below to drop till 129-126 levels, which
also coincides with the long term upward slopping trend line drawn from the March 2009 lows of
115 levels.

At the same time on the higher side initial resistance is seen at 136-138 and further above to
move higher till 140.5 levels.

Overall one can foresee coffee prices to move in the broader range of 126 and 140.5 levels in the
coming few days to one week time period.
Global Services Division

Agro (ICE) – Cotton No.2

Trading Strategy (for Cotton Mar’10 contract - applicable for 3-5 days - Cents/lb)

Buy/Sell Entry point(s) Liquidation

Entry Point Stop-Loss
Futures Contract [Advised on] Triggered on Objective
Cotton
Stay away
(ICE) Mar’10

ICE Cotton prices currently holding the trend line support around 68.9 levels and in case drop
below that level on daily closing basis then expect the down trend to continue with targets of 65-63
levels in the coming few sessions, which would also coincides with the triangle formation target.
On Wednesday prices moved in the range of 69.03 and 70.28 and finally settled lower at 69.23
levels.

Prices in the early European session is currently trading at 69.52 and in case drops below 68.90
then expect further downside towards 65-63 levels in the coming sessions.

On the higher side initial resistance is seen at 70.8 to 71.3 and further above to move higher
towards 72.25 levels.
Global Services Division

Agro (ICE) – Sugar #11

Trading Strategy (for Sugar 11 Mar’10 contract - applicable for 3-5 days - Cents/lb)

Buy/Sell Entry point(s)

Futures Contract Entry Point Liquidation Stop-Loss
[Advised on] Triggered on
Objective
30.10
Sugar11
Sell 29.3/29.40 ---- 28.30/28.20 daily
(ICE) Mar 10
closing

Sugar 11 Mar’10 futures declined sharply to test the lows of 28.16 on Wednesday and currently in
the European session trading at 28.78 levels. Prices moved in the range of 29.40 and 28.16 and
finally settled lower at 28.36 levels.

On the lower side initial support is seen at 28.55-28.35 and then at 27.87-27.30. In case drops
below 26.70 then expect the downtrend to stay for a while with targets of 25.6 to 25 levels. Only a
significant close below 23.8 and below will signal reversal in trend.

On the higher side initial resistance is seen at 29.40 and then at 29.80 levels. For a clear up trend
prices should settle well below the recent highs of 30.10 and above on daily closing basis.

Global Services Division Research powered by

Scott Slutsky, Managing Director
312-563-8325
sslutsky@pfgbest.com

Disclaimer: There is risk of loss in trading futures and options