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Posted by Tango
on January 10, 2019, 7:23 am
Selling was present in both markets but Arabica showed some strength, climbing well above unchanged while Robusta remains below its settlement and placing the arb at 36.00. The market is quiet now and waiting for 8:00. Buying by the index has been in July it appears but it is inconsistent. Managed money are likely buyers but the focus is more on the sellers, whether liquidation or new. The depth of market shows some buying beginning near todayís lows in March and in forward months. The sell side has larger blocks offered but they are more scattered. Spreads have been under pressure, mostly in Arabica, due to buying in the near forward months. The $ is higher today but the market has ignored currencies including the Realís steadyness. Dryness in Brazil is focused in Bahia, Cerrado Mineiro and Zona de Mata placing some crops under stress. The Pacific currencies are higher, including the Yuan, but all other major currencies are down. USDMXN is 19.228 around unchanged as is the USDCOP at 3133.75, but it has been strong when the day gets going, and USDBRL is 3.6908 +.0102 +.27%. Bond futures are higher. Metals are mostly higher but quiet and equities are lower. Oil is slightly lower as are sugar and cotton while cocoa is lower.
The market remains steady and exhibiting both strength and weakness throughout the day.