Coffee Traders' Forum - A Discussion about Coffee Futures Trading
Coffee Traders Discussion Forum
The market continues to be under pressure in the early hours. It may be too early to gauge direction especially since the depth of market is only moderately populated and there doesn’t seem much interest in forward buying. Buyers have a greater present than sellers by 4:3. Of course the systems will be contributing to the pressure at 8:00. Several market reports are commenting that the index funds have not been evident. Yesterday, over 4000 TAS traded. This is the usual SOP of the index funds, to prearrange a trade with another party via TAS. We have seen this over and over. There are presently 130 March TAS offered. If indeed index funds have been buying, it remains a mystery as to why the market is so weak. Also in focus is the Feb option expiration for Friday. Although Feb is not an important option month it nevertheless contains positions and so the strikes play a role in market behavior. The arb remains in line at 48.21. USDBRL is 3.2394 -.0012. COP closed yesterday at 2905.98 +.43. All currencies except the ¥ are down against the $. Bond futures have been under pressure but are now rebounding. Metals ar mixed with gold and silver lower. Oil and equities are slightly higher. Sugar is lower, cotton unchanged and cocoa is higher.