Coffee Traders' Forum - A Discussion about Coffee Futures Trading

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Market *PIC*

The market opened slightly lower then got slammed at mid-morning but quickly recovered after it traded near 140.00. Longs have been present throughout the entire move higher as we see them selling every day. Yesterday, selling kept the market subdued for most of the day. Does yesterday's and today's weakness translate to a trend reversal? Negative fundamental signals for the near term have not changed. There have been negative technical indicators signaling a correction throughout the rally. Have these signals now been fulfilled? For now the market remains dictated by systems buying, long liquidation which has been overpowering for now, the roll out of Sep and options expiration on Friday. It's likely that the 140.00 strike will provide support beneath this strike. For now the depth of market does not reveal much on either side of current prices and across the board. Spreads have been anticlimactic as frost fear liquidations and intense rolling have not yet occurred. The Sep OI is 74k still so we can expect more liquidation in the form of spreads and outrights. Although the Sep arb is remaining constant at 44.74, the NovJan is down to 20 premium with a low today of 18. There is no action in the BRL as it is remaining at around 3.1274 and the COP is also unchanged at 2997.25. Bond futures are flat after a steady morning. Currencies are mixed to render a flat DX, equities are down, and oil and metals are higher following increased saber rattling by Trump and Kim Jong-un. Of the softs, sugar is higher while cotton and cocoa are lower. Please provide kc short-term charts.

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Market *PIC*
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KC Volatility