I trade commodities pretty often (gold, platinum, oil, wheat, and corn) and cocoa futures scare me with the low volume and being a "food" commodity.
Having said that, I'm bullish on all of the commodities and cocoa's long term charts look pretty good. The small volume would mean a wide stop, so for the March contract that is at 2,476 as of 1:20 PM my stop would be in the 2,420 range.
Looks like if cocoa makes it above 2,531 in the March contract it should hit 2,700 pretty quickly.
As far as hedging with the ADM short, my thought would be just buy less futures contracts. I've tried the long gold futures and short miners deal and it turns out to be more trouble than it's worth.
This post was edited on 11/21 at 1:26 pm