Zenith Trading & Holding Corporation

The answer from most trade houses is, "Yes, cocoa supplies are adequate." So what is all the panic with a rush of short sellers to cover their positions in cocoa? The main concerns appear to be continued unrest in the cocoa-producing regions of West Africa coupled with some extremely hot, dry weather coming off the Sahara. Atrocities by all sides in a civil war in the Ivory Coast, the world's larges producer of cocoa, have left a rather decimated situation into which foreign investment is very risky.

The news from othe parts of the world with respect to cocoa production is not necessarily good either. Parts of southeast Asia which have attempted to produce cocoa are running into weather problems, flooding, and just a basic inability to produce that particular crop. Thus cocoa farmers in Indonesia and Malaysia are hard hit.

Chocolate is a luxury in some circles in this period of economic hardship. But grinders and producers of chocolate are well aware of this and are adjusting their marketing to the higher end of the markets. Demand simply is not slowing that much, but production is as shipments from various ports decline.

Archive List

# Commodity BS Buy Sell Last Gain Intended Rough Group (Loss) Risk Percent 2 Mar Crude Oil C 98.32 101.53 98.88 $ 6,360 14,980 7.7% Petrol 2 Mar Cotton #2 C 92.22 97.11 95.47 $ 4,830 14,990 5.2% Cotton 9 Mar U.S.Dollar Index C 80.15 81.71 81.72 $ 13,770 14,940 5.2% Currency 2 Feb Gold S 165.62 163.08 $ 5,020 15,000 20.7% Prec Met 2 Mar Hi Grade Copper C 339.90 346.50 363.70 $ 3,240 15,000 5.2% Copper 2 Feb Heating Oil #2 C 302.70 294.10 302.70 $ -7,284 7,224 7.7% Petrol 8 Mar Orange Juice C 168.77 206.92 184.60 $ 45,540 14,988 15.5% Softs 1 Mar Coffee "C" C 217.90 228.30 225.20 $ 3,870 15,000 15.5% Softs 9 Feb Live Cattle C 120.45 122.31 122.47 $ 6,426 14,940 10.3% Meats 9 Feb Lean Hogs C 83.13 86.15 85.60 $ 10,602 14,940 10.3% Meats 12 Mar Natural Gas Mini C 2.67 3.14 2.71 $ 13,740 14,700 5.1% Nat Gas 11 Mar Oats C 306.30 282.50 282.50 $-13,420 13,090 20.0% Grains 2 Mar Palladium L 620.00 635.00 $ 2,940 15,000 20.7% Prec Met 3 Apr Platinum S 150.65 148.88 $ 2,565 14,985 20.7% Prec Met 12 Mar Rough Rice C 144.58 148.70 144.40 $ 9,528 14,976 20.0% Grains 3 Mar Sugar #11 World L 22.99 23.84 $ 2,766 14,986 15.5% Softs 1 Mar Silver C 28.01 30.56 29.52 $ 2,520 14,990 20.7% Prec Met 5 Mar Soybean Meal C 298.20 322.20 301.50 $ 11,850 15,000 20.0% Grains 4 Mar Treasury Bonds C 142.54 144.42 145.00 $ 7,400 14,960 5.2% Finance 3 Mar Chicago Wheat C 601.90 666.30 602.20 $ 9,570 15,000 20.0% Grains Adjustment for Open Positions: -($ 13,291) Prior to 01/03: Other Gains/-Losses This Reporting Period: $ 0 *** *** For Contracts Closed or Rolled Forward __________ Total for all Trades: $ 128,542

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Recommendations may include trades which have already been made on the same or a previous day, otherwise the issue is placed on a "watch list." Suggested trades are based upon an approximate maximum $15,000 capitalization requirement per trade, depending upon initial contract margin requirements. Zenith's actual trades may be larger. $22 per round turn for futures is deducted from profit figures. Commodity option trade recommendations are not tracked, but performance should parallel that of the underlying commodity's.

Junk Mail Robot Trap

01-27-2012: Are Cocoa Supplies Adequate?

Archive List

Performance

All Commodities Trades 01/03/2012 -01/14/2012: