Coffee Traders' Forum - A Discussion about Coffee Futures Trading

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Coffee Traders' Forum

OI/Market/Volatility *PIC*

Big drop in July indicates a combination of spread and outright liquidation. Short covering by funds and long liquidation by commercial and others whould be the same pattern of the COT report. Today long liquidation or short selling or both is taking place as, likely, systems continue to buy but are undetectable. Commercial bids have emerged however and are lined up. 120.00 is a striking price which should be considered as Friday is June option expiration. USDBRL is 3.5408 +.0017. The market feels heavy but with good support present. Also note the EFP activity which touches every month to Dec20. Light volume but the increase in OI may be indicating origin selling.

KC AM Straddles: (N 12105)
{{M 120 strd 240/265,}} 17.7% -1.5% Exp Friday
{{N 120 strd 575/605}}, 19.75% -1%
{{Q 122.5 strd 855/885,}} 20.35% -0.8%
{{U 122.5 strd 1065/1105,}} 21.35% -0.7%
{{Z 127.5 strd 1660/1710,}} 23.15% -0.5%
{{H 130 strd 2070/2130,}} 23.45% -0.3%