Coffee Traders Forum
[ Post a Response | Coffee Traders Forum ]
Posted by Tango
on June 11, 2019, 7:22 am
RC opened higher and dropped as KC opened. Both markets continued lower and KC attempted to rally to its opening level but failed only to make a new low for the day. It again has tried to penetrate 98.00. It was a good attempt as size was offered and was almost all taken. The depth of market shows scattered offers and bids in the forwards. The lead month will populate after 8:00. But of course the majority of the volume is confined to spread trading as is typical during the roll. The JulSep has been firm indicating shorts rolling forward. Yesterday the July volume was 49,989 lots of which 70% were spreads. In Sept, 45,452 lots traded of which 85% were spreads while the total volume was 114,812 and 80% as spreads. Although the outright activity is secondary, it is sufficient to move the market 2.75 cents. Who is doing what is difficult to say but we can assume that fund shorts are buying. Striking prices continue to be relevant imo. The roll is also relevant and can provoke rallies as well as drops. Currently the market broke through 98.00 and is steady but 8:00 should provide a clearer picture.
Major currencies are mostly lower and the DX higher. The BRIC currencies that are open are all higher against the $ including the Yuan. USDMXN is 19.1707 -0.0459 (-0.2389%), USDCOP is 3,257.00 +1.36 (+0.04%) and USDBRL which closed at 3.8874 is valued at 3.8782 on the CME.
Bond futures have been weak and are down putting pressure on the metals except for copper which is higher together with equities. Oil is higher and grains lower. Sugar is lower while cotton and cocoa are higher.
The market has certainly been a disappointment for bulls. Implied volatility continues to be pressured as well. Weakness is inherent to FND season but the market can easily climb back for the same reason.