Coffee Traders' Forum - A Discussion about Coffee Futures Trading
Coffee Traders Discussion Forum
Greetings. Another week of short covering and price appreciation. Changes:
- hedgers (in red) cut 800 longs and added 7,400 shorts. Net - 8,200 to the short side;
- non-hedgers (in orange) cut 7,700 longs and 16,900 shorts. Net - 9,300 to the long side;
- managed money (in yellow) cut 2,000 longs and 12,500 shorts. Net - 10,500 to the long side.
2 funds joined bulls and 15 funds left bears.
Net positioning indexes (in green) show growth of bullish mood in managed money camp. However this growth is not remarkable. Hedgers became slightly less bullish.
OI index (in blue) reduced a bit. Market participation indexes (in purple) show that hedgers are coming back while speculators are losing interest in coffee market.
Net position of managed money is still negative but only 25% of the one a month ago. How long this upside will take - I have no idea. But as many commenters mentioned here - a rally based on short covering alone is not healthy. Assuming other fundamental and technical factors I will sell my first batch of calls around 145.