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Posted by Tango
on May 30, 2019, 7:08 am
We again have a supportive early session. Buying was present on the Robusta opening and that market is steady now but is not keeping up with Arabica as the arb has widened to 35.07. The depth of market is unremarkable with the exception of relatively more size offered at the even prices. So far volume offers have attracted the hungry buyers. 8:00 should bring continued buying by shorts but some longs are not convinced of further increases in prices. After over 2 years of disappointing rallies, it is normal to be skeptical of the market. Are we in a reversal? Yesterday was a busy day for day traders although dips were shallow and not frequent. Spread activity was good as was option trading. The July volume was 43,376 lots of which 70% was outright trading. Forward outright activity was also relatively high. Of the 78,875 lots that traded totally, 51% was outright. Without July, 29 % of the volume was outright trading, most of which was forward selling. There was obviously help from the Real yesterday as it too rallied.
Presently the DX is trading either side of unchanged of 98.035. Although the Yuan is higher other EM currencies are lower. USDMXN is 19.1324 +.0052 + .03%, USDCOP traded unchanged at 3350.30 and USDBRL which ended 3.9742 is showing a value of 3.9825 on the CME.
Bond futures fell slightly overnight but are slowly gaining. Metals which have been coupled to interest rates are mostly down. Equities are slightly higher as is crude. Sugar and cotton are lower while cocoa is higher.
The market continues on the steady side.