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Posted by Tango
on June 17, 2019, 7:04 am
Robusta opened with selling then stabilized bringing the arbitrage down to 34.33 as KC opened around unchanged and eased to the current lows. It is now also stabilizing as bids are emerging in Sep. In the forwards bids begin at around 3 cents below current levels and extend to July 21. Spread trading still accounts for 70% in Sep and 75% in total volume but the spreads are not generated as a result of forward outright activity but rather as spreads themselves. For now the market remains unpredictable until the July OI diminishes. At the moment the market appears steady.
Major currencies are mixed rendering a lower DX but bond futures are lower and are putting pressure on metals. Copper is slightly higher together with equities. EMs are also mixed with the Yuan higher. USDMXN is 19.1632 +0.0132 (+0.07%) and USDCOP is unchanged at 3268.25. USDBRL closed at 3.8961 and is is 3.8989 on the CME. Oil is lower while grains are higher. Sugar and cocoa are lower with cotton higher.