Coffee Traders Forum
[ Post a Response | Coffee Traders Forum ]
Posted by Tango
on June 4, 2019, 7:06 am
There was buying in both openings but Robusta has not been able to hold on to earlier gains and the arb remains wide at 36.23. KC is attempting to go higher but the real test will come at 8:00. The depth of market shows little until a penny to a penny and a half lower from current levels where bids build up. Yesterday turned out to be curious towards the close. Hundreds of lots were offered down and were bought. It appeared to be more of pre-planned trade than a coincidence as so much volume was quickly grabbed leaving no consequences to the market. Whatever, it seems that the market is at a deciding point as to whether it will resume higher or if it will stall. 8:00 will likely bring buying and reports of cold weather, even if no frost, continue.
Currencies are mixed against the $ rendering a slightly lower DX. EMs are also mixed with the Yuan again lower. USDMXN is 19.7007 -.0698, USDCOP is 3372.00 -.38 -.0113% and USDBRL closed at 3.8851 and is valued at 3.8804 on the CME. The strength of the Real has discouraged forward selling and has not attracted any evident spec buying.
Bond futures are lower but gold continues to strengthen. Other metals are not as strong, putting the gold/silver ratio above 90.00. Oil is lower and equities are higher. Sugar is lower while cotton and cocoa are slightly higher.
For now the market is on the steady side and waiting for 8:00 to bring managed money buying and uncertain selling.