Coffee Traders' Forum - A Discussion about Coffee Futures Trading

Coffee Traders Discussion Forum

Coffee Traders' Forum

Market *PIC*

There were resting bids beginning above unchanged that got hit in the first few minutes of trading. The depth of market shows bids accumulating below the low. Sctattered bids are present, have been present, across the board. Almost 500 lots are wanted in Sep at 120.00 which is a penny and a half below current prices. July ‘s volume is slightly higher than May’s this morning. May option expiration is on Friday and the market has spent a great deal of time both yesterday and today entertaining the 117.50 strike. The bigger story is the MayJul spread which traded yesterday from -1.80 to -2.00 bid. This morning it is offered at -2.00. We saw the spread OI increasing for weeks in the COT report as every sector seems to have anticipated the large spec roll. The latest May OI is 93k but yesterday’s it should show a big dent. The RC spreads are just as volatile and seem to be very sensitive to market direction. The MayJul there is -27 while the JulSep is 7 premium. The arb is showing a steadier market than KC with the May value of 38.33. SCASA provides an interesting report on Viet Nam’s agricultural approach.

The Real is unchanged at 3.4057 and the COP is 2770.25 -1.35. Currencies are mixed but the bigger of those that comprise the DX are all higher. All metals are higher except for silver rendering a gold/silver ratio of 81.47. Oil rallied big yesterday and is higher today. Equities are lower. Sugar is lower at 12.00 while the other softs are higher.