Coffee Traders' Forum - A Discussion about Coffee Futures Trading
Coffee Traders Discussion Forum
Good buying took place at the opening and the market has a steady demeanor to it. The bids displayed yesterday on the close below the market are not present but the depth of market is nevertheless well represented on the buy side and may become more populated as the day progresses. The forward months remain well bid but scattered. Of course we have our friends the system funds who will be sellers at 8:00 or so. As we know, momentum is the only factor in their program as their assumption is that any fundamentals, weather developments or currency become factors only if they impact price. Not a bad science. But also at 8:00, other fund managers, large traders etc. start coming in and may be motivated to consider current crop conditions and potentials in their decisions. For now, we have commercials who are prepared to buy any weakness. It is important, imo, not to be motivated by exuberant and extreme thinking. The market will tell us what to do. For the long term, the market is suggesting to go long, imo. The theoretical reversal level for the algos is 122.00
Robusta is holding with KC with an arb at 38.32. Spreads in both market are on the steady side. USDBRL closed at 3.6529 and COP is showing an unchanged price of 2874.00. The $ continues to rally and is weighing on metals. Bond futures are steady however. Metals are lower in spite of increased geopolitical tensions. Equities are unchanged and crude slightly lower but the Brent/WTI is close to 7.00 premium. Cocoa is lower. Sugar is also lower but steady. Cotton is much higher. Corn is higher. Got long yesterday based on Phil’s and Jack’s recommendation. Thank you.