Coffee Traders' Forum - A Discussion about Coffee Futures Trading

Coffee Traders Discussion Forum

Coffee Traders' Forum

Market *PIC*

Buying at the bell seems to have attracted selling which brought prices to current levels and to solid support. Buying is not only well displayed in Dec but the second half of the order in March that we saw trade at 135.00 is being bid for 330 lots at 130.00, or 126.40 in Dec basis the DecMar -3.60 bid. Bids are also present out to Sep18. We can safely assume that the majority of Dec buying is commercial and likely associated with option delta hedging. It is also safe to assume that the forward buying is also commercial but representing consumer demand. The depth of market on the sell side is unremarkable. In spite of this setup, selling continues to be present even before systems selling commences at 8:00. The Arb is 39.30 in line with Friday. The NovJan spread in Robusta remains firm at 28 premium in spite of the general weakness in coffee. BRL is 3.1641 +.0014 while the COP is 2942.77 +5.87. The $ continues to be strong pressuring gold, silver, and platinum in spite of the strength in bond futures that are recovering from previous weakness. Softs are lower, sugar less than cotton and cocoa.