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Market *PIC*

Selling at the bell and additional selling at the same time as yesterday's selling highlight this morning's market. The market has bounced back to 142+ for now. Yesterday, the market closed at around the same level as the day before, and the activity was similar as well where prices bounced around in the higher half of 142.50 or so. It's difficult to say what is going on in the market. We know that EFP are being posted reflecting liquidation by both sides of the commercials. Sep is being liquidated by both shorts and longs, some of which is being rolled into Dec. Finally, Sep option expiration is providing some hedging and non-hedging or just squaring of books. There seems to be friendly news that is released just about every day, low stocks, disease, low exports. The market continues to act steady but it makes one wonder when several sectors that are long are such intense sellers. Possibly after option expiration tomorrow there will be a clearer sense of trajectory. For now, a steady market continues with corrections that prove to be buying opportunities. Systems will continue to buy, and, in the absence of any overpowering selling, will define direction. SepDec is frozen at -3.55/-3.50 but the NovJan in London continues to ease and is currently at 17 premium. RC itself appears to be lagging kc as the arbitrage is 45.50 today. The Real yesterday was on the weak side and BRL today is 3.1557. The COP is 2990.30 -22.32. Bond futures are flat but world tensions (stupidity) are motivating equities, which are down, and metals, which are up and strong. Oil and soybeans are steady. The dollar is up against all currencies except for the ¥. Sugar and cotton are slightly lower while cocoa is a shade higher.

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Market *PIC*
KC Volatility