Used to trade it, was required to register as a Large Speculator (wooo!) because I once had a position greater than the whopping 150 contract threshold that divided Small from Large specs. Had to mail my registration form to the CFTC office in the World Trade Center, NYC. But the average daily volume of the front month contract of JO has dwindled and is too low for my comfort. So I haven't traded it for a few years, instead I've replaced it in my portfolio with Malaysian Crude Palm Oil, London Sugar #5, London Robusta Coffee, and a few other international softs.
OJ- Piece of shit to position trade but real nice market to scalp.....just watch the orderbook and literally play local in that market. Can usually catch some nice stops every now and then and make some decent cash!
Looks like those plays on Sugar and Cocoa are gonna go a major bull run in the next year - so position yourself fellows
Concur with above post on stops. Personally like orders that are on the edge of a range to establish a positon in OJ as the thinness can work for your favor in that respect. Then ok to scalp out for a few ticks if no major move. Looking with some criticality at OJ - isn't 50ish the longer term low though? Nice buy down there if it ever goes there. no current position on OJ
There is a slightly bad case of black pod disease in Ivory Coast and as usual Joe Six Pack is net short, perfect setup for a rally........
My only question is how much lower can OJ get - this is interesting - Its low but Im not yet buying There is easier money by shorting Dollar Index and buying Canadian Dollar ( Globex not the forex bucket shops)
Got my ass whipped on US Index short - that rally today makes no sense - but hey got some big rallies in Canadian Dollar and Sugar. The other move that made no sense today is collapse in coffee - this market is shaking another big bottom
Maybe an inverse H&S in the cafe? Interesting to note...went to a private event last year by one of the big banks, and they had some excellent analysis on which commodity sectors perform best/worst WHEN ISM is below 50... The worst performing sector in recessionary environment are the softs...followed closely by the energies... Top performing sectors in recessionary environment are grains and metals....