Coffee Traders' Forum - A Discussion about Coffee Futures Trading

Coffee Traders Discussion Forum

Coffee Traders' Forum

Market *PIC*

The opening was thin but steady. It set the low for the morning and has been a supportive factor since. Yesterday’s sell off proved to be a correction. Nagual’s daily provides an impressive picture of the market’s trajectory, occasional correction and support. Of course, yesterday’s activity was impressive as well. 62+k traded with slightly more than half as spreads but the outright selling choked the market until it dropped. Volume traded at each tic on its way to the high. Both the intense selling and buying make the market a difficult call. The market feels that it will break away from the continuous pattern of disappointing and failed recoveries but it still needs to prove itself. For this moment it is steady with the depth of market showing a slightly greater bias to the sell side but we expect systems buying to resume at around 8:00. The positive side of the systems buying is that even after they cover, which is a long ways off, they will then buy new. The negative side is that if the market drops to below 120.00, they will reverse to selling. JulSep is on the weak side for now but well bid. RC is firmer than KC at 42.06. Spreads there are quiet. USDBRL is unchanged at 3.5511 as is COP at 2832.50. Other currencies are mixed rendering a slightly lower DX. Bond futures are very steady after yesterday’s FOMC comments. As a result, metals are higher and steady. Crude is near unchanged and equities are slightly higher. Softs are around unchanged but cocoa is slightly lower.