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Robusta COT Report
Posted by Tango
on January 11, 2019, 4:17 pm
Robusta, like Arabica, opened at the lows of the period and traded at the high of 1559 twice and close to this high on the other two trading days to end near this level. The buying was 100% speculative in the form of short covering and new buying. The commercial selling was also a combination of new and old. It should not be a surprise if the Arabica COT showed the same general activity of speculative buying and commercial selling, mostly. Also like Arabica most of the selling is likely option related and in this type of market, where there are no real bullish fundamental reasons to rally, both the selling and the buying that build up can thwart any dramatic move, to leave us within the parameters of the channels. The rebalancing, which turned out to create sporadic moves, or as JuanV describes roll type environment, was certainly anticlimactic. Nevertheless, it is a statement by the a Bloomberg index fund as to their long term view of the market. Option expiration is behind us and hopefully Monday is the end of the rebalancing, if not yet done. What we are left however, is what exists in several other markets, lack of volatility, lack of interest and few opportunities.