Coffee Traders' Forum - A Discussion about Coffee Futures Trading

Coffee Traders Discussion Forum

Coffee Traders' Forum

Market *PIC*

Good buying at the opening provided support for the morning. The market is drifting presently but is constrained to a narrow range. There are both good bids and offers lined up but the bias is on the buy side. 8:00 should bring a variety of players especially the systems funds who will be buyers. There is no depth of market in the forward months at these levels. The arb is 41.60 which, if I recall correctly, is in line with Friday’s RC close. The NovJan however has firmed back up to 29. Regardless of what we may hear about Robusta stocks, the performance of the NovJan must reflect the supply situation in this market. Other theories are welcome. BRL is 3.1552 and unchanged while the COP is also unchanged at 2937.83. Bond futures spiked higher earlier and have remained elevated providing strength to all the metals except copper. The main currencies ar all higher against the $ making DX lower. Oil is slightly higher together with equities. Sugar and cocoa are higher and cotton is lower but is bouncing back from the lows.

In KC buying dips is in order depending on selling intensity. At current levels there must be a high level of shorts in addition to the systems.