Coffee Traders' Forum - A Discussion about Coffee Futures Trading
Coffee Traders Discussion Forum
Although the OI is down it is barely down. This indicates a variety of participants. We can assume that systems are short covering while longs are liquidating but it appears that there are new buyers coming into the market. Of course it could be new sellers but the impetus has been upward. Spreads in the front have been steady which is likely a reaction to the former spread, DecMar, that traded from -3.85 to -3.05. It’s difficult to think of any other reason because certified stocks are plentiful and there are no shortages in the physical market. The reason why the DecMar came in so much was because of the fund short position that needed to be rolled. If shorts continue to buy the impact will not be as profound on the current MarMay. The arb is 50.43 and the USDBRL is 3.2181 +.0055 as the $ strengthened.