COCOA

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GENERAL OVERVIEW OF COCOA MARKET

ISSUE DATE: MAY 19, 2006

The price action after May 8 showed the need to adjust Cocoa cycles upward. This shows that Cocoa has not broken the current series of cycles. We still think there is a chance a break over HEC could occur within the next couple of weeks. So, we have target 1 as a likely level if an HEC break doesn't occur, or cocoa could trade in a range between IC2 and HEC.

If COCOAoes break up through HEC it will be the start of a major bull phase.