Coffee Traders' Forum - A Discussion about Coffee Futures Trading
Coffee Traders Discussion Forum
Buying took place after the weak opening and the market has been generally steady since but quiet. Good buying is present beginning at 125.50 and down. The sell side is also crowded to a lesser degree but more than it has been. Systems are the expected sellers at 8:00. The OI has been climbing as commercials and other spec groups are buying long from systems and different spec groups who are selling short. These dynamics can translate to several consequences depending on who the players are. Are stops building below or above? We will discover tomorrow for at least from last Tuesday and the week prior as to whom the participants are. The buyers who can propel prices higher were not present yesterday and the market will continue to drift lower without them. We would need a 4 to 5 cent rally to reverse the systems. London is keeping pace with NY with an Arb difference of 36.38. The NovJan continues to be strong at 38 premium. Is this a reaction to the physical situation in Viet Nam or is the reason more related to futures? BRL has been coming back gradually but surely. BRL is 3.1426 -.0031 and COP is 2952.83 +.74. Bond futures have been steady, the dollar weak and the metals are responding positively. Crude and equities are lower and all the softs are higher. Is cocoa a sale Nagual?