Coffee Traders' Forum - A Discussion about Coffee Futures Trading
Coffee Traders Discussion Forum
The drop in OI seems to be all in July. Without consideration of the 10k+ JulSep spread volume, the drop indicates long liquidation and short covering. We had seen on the COT that some funds added new buys. Possibly they liquidated yesterday. On the buy side it appears to be fund or other spec short covering, possibly systems, and commercial buying. As we saw in the COT, commercials increased their short side. Today it seems that systems short covering continues. There is resistance as has been the fashion for some time. Why are the buyers not ferocious and the sellers so reluctant to remain long? What is it about the market itself that does not have the confidence it needs to shoot higher? Just posing questions and not trying to answer. The market is not retreating from the 121.60 and feels like it wants to go higher and is catching up to Robusta which is registering 39.30 on the arb. The $ is still strong and USDBRL is 3.5682 +.0158.