Coffee Traders' Forum - A Discussion about Coffee Futures Trading
Coffee Traders Discussion Forum
There were a couple of salvos of selling, at the opening and then again at around 6:20, and it continues to be weak as it is trading at the lows, thus far, of the morning. Buying is present in Dec as we ease but there are no significant bids unless we drop 2.50 cents or so where May bids rest. Systems will be sellers at 8:00 but they have not played a significant role lately and have not even been detected in the OI. The increasing OI that we have been seeing is a mystery as to the sectors that it represents but irregardless these sectors have been dominating a vulnerable and thin market. Now with a continued elevated Dec OI we may expect Dec liquidation to be on the radar of many traders, whether long or short. It’s obvious that the roll by some has begun as DecMar continues to be under pressure. Although selling has been present in RC as well, according to reports, the arb has eased to 37.96 indicating that KC has been leading the market downward. NovJan continues to be steady as it is 28 premium today. BRL has been a non factor in our market and is 3.1713 -.0017 and COP is 2953.31 -.62. Bond futures are generally steady but currencies are mixed rendering a slightly higher DX. Metals are steady as gc is trying to hurdle the 1300.00 level. Equities and crude are lower as are the softs. Cocoa seems to have visited Nagual’s resistance level once again.