Robusta opened steady and has remained quiet but has held with the arb at 44.13. KC is higher but at mid range and lacks direction for now. Yesterday, the hoped post expiration rally did not materialize as the market managed to drop 3.45 cents from the previous close with only 27% of the total volume in outright trading. EFP and EFS were high and extended out to May22. The market continues to be in roll mode which is confined to spreads. Yesterday’s drop was certainly anticlimactic to the strength that we had been seeing up to option expiration. The buying that we saw on Friday and before was likely a combination of funds and delta shorts covering. Whether funds will continue to cover or not is to be seen. 8:00 should provide a clue but funds have not been as consistent and predictable as we are used to seeing.
The $Index is higher as all major currencies are lower against it. The BRIC currencies are mixed however with the Yuan higher. USDMXN is 19.1257 +0.0187 (+0.10%), USDCOP is 3334.00 and unchanged and USDBRL closed at 4.1516 and is valued at 4,1484 on the CME.
Bond futures are lower while equities are slightly higher and metals slightly lower, except Palladium. Crude is higher, sugar unchanged and cotton a tad lower. Cocoa is higher.
The market is under slight pressure for now in spite of hot temperatures and minimal rains.