Coffee Traders' Forum - A Discussion about Coffee Futures Trading

Coffee Traders Discussion Forum

Coffee Traders' Forum

Market *PIC*

Opening support was followed by intervals of selling. As a result, the market has been drifting lower. At these current levels there is a likelihood that systems will be sellers and stops will be hit if the market continues to drift. Support is present in the form of resting bids. Long put holders will also be providing support and short put traders will need to decide if they want to sell futures below 120.00. Scattered buying is present in the forwards but nothing of significance at these levels. As a friend of mine commented yesterday, this market is seller controlled. This is true even when we rally. However, the market may invite some weather inspired buying at these lower prices, maybe. Spreads continue to be on defense as the large -2.40 bid in JulSep continues to get hit. SepDec however is remaining -3.45 bid. The RC arb is 39.05 and spreads there are drifting lower, breaking away from their volatile performance that we have seen in the past. USDBRL early indication is unchanged at 3.5632 and COP is 2871.95 +1.62. Currencies are mixed but are steadying against the $. Metals are down and weak as bond futures slowly ease. Oil is up sharply. Sugar and cotton are slightly lower and cocoa is lower.