Coffee Traders' Forum - A Discussion about Coffee Futures Trading

Coffee Traders Discussion Forum

Coffee Traders' Forum

Market *PIC*

The market actually opened higher this morning but selling immediately ensued. The sellers are seemingly undaunted by the underlying bids. Including the forwards, there are around 700 lots wanted from current levels down to 125.00. The forward buying extends to Dec18 and is likely consumer buying. 125.00 is the next striking price for Jan expiring options and the effective futures short position increases dramatically below this strike. Many traders will need to cover their potential shorts if they own puts, and will not need the short hedges if they are long calls. Of course, the decision to exercise is on the owners of options. Nevertheless the market remains pressured especially considering the systems sellers that will join at 8:00. The selling in general has not been of a panicky nature and the buying is solid but the market in general continues to shrink in interest with narrowing ranges. Hopes of increasing volatility are shelved for now. RC remains the more supported market with an arb of 45.41. The JanMar is holding at 12 premium bid. The Real has weakened overnight as the USDBRL is 3.2716 +.0359. The COP closed at 3010.23 +13.93. All other currencies are lower against the $ and bond futures are slightly lower as pressure on the metals mount. From an investment standpoint, the strong equity market continues having negative consequences for commodities, generally speaking. Oil is slightly higher, as are sugar and cocoa while cotton is lower.