Coffee Traders' Forum - A Discussion about Coffee Futures Trading
Coffee Traders Discussion Forum
Quiet Thursday here for NY Coffee. Not much different than what we saw most of the day yesterday. A heavy market remains, with bouts of relief, which provide it seems good intra-day selling opps.
ZH now -380/-375, the lowest level this spread has traded to date. The lowest level we saw the previous 3 month spread (UZ7) trade was -360. Should be an interesting roll upcoming.
Tomorrow we have X7 expiration and we are approaching the 1.25 strike where we likely attract some gamma related activity. On the buy side, the most notable forward bid to recognize comes in K8, where there is a 1.3000 bid resting. With ZK trading -615, the spot price (Z7) would find support at ~ 12385.
On the macro front, we saw PPI released earlier :
The Producer Price Index for final demand advanced 0.4 percent in September, seasonally adjusted, the U.S. Bureau of Labor Statistics reported today. Final demand prices moved up 0.2 percent in August and edged down 0.1 percent in July. (See table A.) On an unadjusted basis, the final demand index increased 2.6 percent for the 12 months ended in September, the largest rise since an advance of 2.8 percent for the 12 months ended February 2012.
Within final demand in September, prices for final demand services rose 0.4 percent, and the index for final demand goods climbed 0.7 percent.
Prices for final demand less foods, energy, and trade services increased 0.2 percent in September, the same as in August. For the 12 months ended in September, the index for final demand less foods, energy, and trade services advanced 2.1 percent.
Later today we have the USDA WASDE report, so that will provide some excitement for those interested in the grains, cotton.
12530 =1.318% of yesterdays TR.