Coffee Traders' Forum - A Discussion about Coffee Futures Trading
Coffee Traders Discussion Forum
The change in OI is negligible. Normally it would indicate new vs old but because it was option expiration it represents mostly the squaring of books imo. Today we see continued pressure with very good buying by mostly commercials. There’s a lot of discussion about the funds. My view is that everyone is right. Certainly the momentum funds are motivated only by market direction and trigger points. There are other managed money that although motivated by technicals are not algos. Of the approximately 90 funds on the short side of the market, some will spontaneously enter the market and buy or sell. Of course other specs will do this as well. Buying can come in at any time. What we’re seeing today is some sell stops being hit but the majority of selling is algos. Spreads got defensive as forward bids are getting hit by May selling + the implied engine. Not much change in currencies. Cocoa is very strong.