Quiet market but good buying took place in both markets at the opening. Prices are above unchanged, slightly steady and targeting yesterday’s high of 96.60. The market yesterday was on the downside but turned and rallied. Outright volume was good and seemingly provoked by the Real. EFPs were posted that extend to the forwards. There continues to be both good commercial buying when prices are weak and, to a lesser degree, forward, possibly origin, selling. Spreads are steady for several reasons, namely, forward activity, roll anticipation and possibly decreasing warehouse stocks. But, we continue receiving reports that supply is abundant, yesterday from the ICO.

The $ is weak against all currencies, except the ¥, and weak also against the Yuan and the other BRIC currencies, a reversal of yesterday’s macro picture. USDMXN is 19.8232 -0.1495 (-0.7485%), USDCOP is unchanged at 3440.73 and USDBRL which closed at 4.1678 is valued at 4.1509.

Bond futures are lower, equities and oil higher. Gold is lower but silver continues to strengthen. It is trading well above 19.00 putting the ratio at 79.91. The softs are all higher.

We continue to see a quiet market that has not yet defined a trend. For now it is softer although currencies hint of higher prices. The depth of market is balanced and 8:00 may not give us any indication. Funds don’t appear to be present and activity seems to be dominated by day traders for now.