Coffee Traders' Forum - A Discussion about Coffee Futures Trading

Coffee Traders Discussion Forum

Coffee Traders' Forum

Market *PIC*

Over five hundred lots were bought at the opening and shortly afterwards to set the current high of 124.20. The 124.00 area has been big for sellers as yesterday 2,000 lots approximately were bought from iceberg sellers at 123.95 and 124.00. Since the opening the market has been quietly drifting away from this level. The OI does not show short covering and long liquidation but it may be concealed by new spread business being added. The behavior of the market and the volume that has been trading is consistent with liquidation by shorts and longs. The short covering should persist but may vary in its intensity allowing for setbacks. As much as rhe COT has been, and will, indicate the tremendous short covering capacity in the market, as we see, it also shows the many longs that have prepared for this short covering. The market is probably in a buy dip mode but It is a market that moves a tic at a time in a very laden fashion. RC has been lagging and the arb is 43.62. USDBRL is 3.2641 +.0130 and the COP is 2879.00 -3.00. Currencies are mixed but the primary ones represented in the DX, €, £, ¥, are all higher against the $ making the index weak. Equities continue to slide after yesterday’s tariff announcement and metals have reacted with a sharp rally. Bond futures are higher, sugar and cocoa are a tad higher while cotton is lower but steady.