Coffee Traders' Forum - A Discussion about Coffee Futures Trading
Coffee Traders Discussion Forum
A big increase in the OI is obviously new buying and new selling. The buying is a combination of commercial and a spec group. The selling is likely several spec groups including systems. It’s possible that producers are selling as well but I have not seen any forward selling which has been the pattern for some time when they do sell. This change in the OI could be perceived as either bullish or bearish. It could be bullish depending on who the buyers are. We know that quite a bit of what commercials bought in the forward months is for keeps. The spec buying could be long term or short term. The selling that took place could be bearish if producers are indeed selling. On the other hand it could be all spec. The systems part will not stop selling until we reach a level of reversal. Other spec sellers are likely short term traders. It’s anybody’s guess.
Today we don’t see the support displayed yesterday as we see the market making new lows for the day. Bids are again lined up making a crowded depth of field. Several markets appear tenuous.