Coffee Traders' Forum - A Discussion about Coffee Futures Trading
Coffee Traders Discussion Forum
A major aspect of the commercial short reduction is the dealers buying back of existing short futures hedges on long physical coffee spot, afloat and nearby as they are sold to the roasters who cannot pass up the cheapest prices in town, If it's hedged it's cheap. But for the time being we have the collosal pin risk in the May puts and the selling of any little sh** rally by the commercials. One day it will give way and the systems (managed money) will need to buy 16 millions bags worth of short futures( and go long) Yikes. Big data analysis suggests the rally should be worth 40% mais ou menos.