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Posted by Tango
on September 11, 2019, 7:26 am
The market opened with selling and shortly after set the low of the day. Since then we are seeing the market creeping up with setbacks. It is now right above the 102.50 strike and has made new highs. Yesterday the 100.00 strike was a non-issue as it appears that short covering is taking place. We should see a drop in the OI later. The weather in Brazil is dry but it itís much too early for declaring drought conditions or to consider any negative crop impact. The depth of market is of course heavier on the sell side. Based on the COT commercials have purchased quite a bit at lower prices for consumption related reasons, options and possibly just to go long. But they purchased from new shorts and delta shorts also watching. Yet, how many times will we fall in love over and over again? We continue to see initial weakness at 8:00 but I suspect that today will be different. Hard to say.
The $ has been steady and is higher but the major currencies are mixed. The Yuan is lower but the BRICs are also mixed. USDMXN is 19.506 +0.016 (+0.08%), USDCOP is unchanged at 3359.53 and USDBRL which closed at 4.0798 is valued on the CME at 4.0998.
Bond futures are lower, metals and equities are more or less unchanged and crude is higher. The softs are also close to unchanged.