Coffee Traders' Forum - A Discussion about Coffee Futures Trading


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Coffee Traders' Forum

OI/Market/Volatility *PIC*

The total OI continues to climb. The May OI is slightly lower, surprisingly. It seems that we had liquidation yesterday as well as new selling, which we know are funds. The EFP volume is light but widespread. The Dec19 is an indication that EFPs can easily be new business. If so it’s either origin selling or consumer buying. We cannot ignore spreads either. Today the MayJul traded at -2.15 and is now trading -2.00. The more new selling that funds and others do in May, the more they need to roll forward. Hopefully some of the roll will translate into outright short covering. For now, funds continue to sell. Attempts to rally have been rejected but 116.00 seems like a solid base for now. The $ has strengthened but it is not affecting the Real as USDBRL is 3.3087 -.0012. Bond futures continue to be soft.

KC AM Straddles: (K 11665)
{{K 117.5 strd 325/340}}, 18.5%
{{M 120 strd 635/655}}, 19.75%
{{N 120 strd 850/880}}, 20.75%
{{U 120 strd 1260/1300}}, 22.1%
{{Z 125 strd 1690/1740,}} 22%
{{H 127.5 strd 1970/2040,}} 21.55%