Coffee Traders' Forum - A Discussion about Coffee Futures Trading

Coffee Traders Discussion Forum

Coffee Traders' Forum

Market *PIC*

This last day of the week, which also brings the Feb option expiration, brings with it an interesting set up. The depth of market which has been kind of equally balanced during these early hours is showing a ratio of buy orders to sell, within a penny either way of current levels, of 9:1 with over 900 lots wanted on the buy side. To get prices higher we of course need some buying other than resting bids, otherwise we will just sit all day as systems slowly hit bids. There seems to be an open question however, imo. There have been big numbers trading in TAS all week. Assumingly, these as been executed as pre-arranged trades between trade house(s) and index funds. Even with the sophistication of trade houses as market operators, it seems to me that they need to cover at least part of what was sold to the index. Then again, I may be an extreme theorist. Other than the resting bids, option expiration and the potential of fresh buying coming into the market we have an increasingly bearish sentiment developing. The Real was not impacted by the negative S & P rating. To me it was based on political developments and not economic. But of course the ability to borrow is affected. USDBRL is 3.2201 +.0047. COP continues to weaken as yesterday it closed at 2857.48 -32.20. The $ continues to be very weak. Bond futures are holding some gains but are now generally flat. Metals continue to fly, oil seems to want to correct at this elevated level and is lower today. Equities are slightly higher. Sugar is slightly lower while cotton is slightly higher and cotton is off the mornig’ highs but higher for the day.