Coffee Traders' Forum - A Discussion about Coffee Futures Trading
Coffee Traders Discussion Forum
You covered every angle in your report Juan. Great job. Just to add some thoughts, the selling that we're seeing in each report every week is both new sales and liquidation. We can't ignore that the option hedging is a big part of the selling. These same sellers will be present if/when we drop. It's an automatic function of the delta as prices change. There was some selling in the far forwards this week which is attributed to producers. I agree that option expiration is over and we can now get a better feel for the market. The roll will be a factor but as the Sep OI drops the less of a factor it will be. I feel that it will be an exciting rest of year. I can only go by current market behavior. There is elasticity which makes for good trading but we also see unquenchable buying - steady, methodical, relentless. This is the market for now. On Monday we will need to see what the residuals there are as a result of option expiration. Thanks again for a perfect report.