Coffee Traders' Forum - A Discussion about Coffee Futures Trading
Coffee Traders Discussion Forum
CafeLatam, thanks for the review. What has been reported makes a lot of sense analyzing CFTC data. The risk-return ratio of large specs may be unfavorable to them. Maybe they will be looking for another commodity market or other assets to allocate their capital. For this they need to reduce the large sold position they are carrying. I also see a great opportunity to buy coffee contracts if prices keep falling.
I realize on the Brazilian Coffee Exchange (BMF / B3) that the number of businesses has been drastically reduced. In the last 7 days of the market, there were no more than 100 contracts traded per day (each contract is 100 bags). I do not know why, but you can clearly see that the Ice / B3 arbitrator has not done business. In the physical market few deals are carried out as well. So much for the lack of will of the buyers, as for the sellers. It seems that the market is waiting for greater price movements.