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Posted by Tango
on December 6, 2018, 6:54 am
Robusta opened with a good amount of selling. It has since stabilized. Arabica also opened with selling which hit bids beginning at the high, unchanged, but remaining heavy making the arb a low 33.66. The bids that are lined up on the buy side are impressive especially for the early hours. There is little interest in forward buying however, and the sell side is sparse. I am told that several trade houses have discontinued their activities for the year. Whatever activity we do see by them is likely option delta related. The continuous selling that we see during the day is likely managed money but does not resemble systems funds. Although it is methodical it can easily be overpowered when any buying comes in. Without any serious buying, the market remains weak. The majority of markets appear to be in the same doldrums as coffee. Major currencies are mixed rendering a slightly higher DX but all the emerging market currencies that I watch are lower across the globe. USDMXN is 20.5897 +.1007, USDCOP is 3159 +3.16 and USDBRL is 3.8923 +.0241 +.63%. Bond futures are showing some buoyancy but metals are lower, together with equities and crude. Sugar is lower. So is cotton but over 80.00. Cocoa is lower.