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Posted by Tango
on January 4, 2019, 7:04 am
In spite of the weak Robusta opening Arabica opened with buying. With the help of the weaker $ prices reached close to 103.00. It has drifted lower since but is still up for the day. RC is quiet and showing an arb value of 32.05. Front spreads are steady in both markets. Yesterday the 100.00 or so level proved again to be an attraction to buyers but itís very possible that the buying was rebalancing related. Blocks were offered and taken or bid and hit regularly. If so, we will see the same behavior again as well as a steady market. The depth of market is showing a crowded buy side and a scattered sell side. 8:00 may begin with some weakness assuming that algos are in a selling mode, but, with sufficient buying, conceivably the market can reach a level that will reverse the algos. We will see if this neatly laid out plan will hold true. Gold overnight broke the 1300.00 but has since come off and is slightly lower but the more industrial metals are higher in tandem with the higher equities. Bond futures are lower but inactive as comments will emerge from todayís meeting of Bernake, Yellen and Powell. Oil is sharply higher. Both cotton and sugar are higher while cocoa is lower. Emerging markets are higher across the board except the Colombian Peso which is a tad lower. USDMXN is 19.5532 -.0688, USDCOP is 3244.00 +1.00 and USDBRL is 3.7484 -.0074 -.20%.
KC continues to be steady for now and is holding 102.50.