Coffee Traders' Forum - A Discussion about Coffee Futures Trading
Coffee Traders Discussion Forum
Good buying at the opening was met by good selling. After making the same high as yesterday, the market has been drifting lower and is now trading on either side of 132.00. The depth of market favors the sell side but the buy side is also well populated. Systems buying will of course show itself later in the morning. The market continues to be on a steady trajectory with some uncertainty and further confirmation is needed to see higher prices. As we saw in yesterday’s OI there is new buying taking place together with short covering. Yesterday’s activity showed spread buying but also resting sell orders in the mid-forward month’s which added demand for spreads. RC continues to show less exuberance than KC. It is normal behavior for RC to lag on an upward coffee market but the arb is expanding even when the market is still. Today the arb is 51.50. The JanMar spread is slightly higher at 8 premium bid. Yesterday afternoon the Real slid and is presently around unchanged at 3.2456. The COP ended yesterday at 3007.02 +10.56. All major currencies are down against the $ except for the £. Bond futures have flatlined after yesterday’s drop. The metals of course are under pressure while equities and crude are showing early strength. The gold/silver ratio is strong as silver is outpacing gold among the two metals. The ratio stands at 77.78 as expressed in March. The more industrial metals, copper, platinum and palladium, are higher in sympathy with a higher Dow. Cotton is slightly lower but remains strong. Cocoa is slightly lower but is on the steady side and sugar is a shade higher.