Both markets have been steady since the opening in a narrow range and remain inactive. I’d like to think that we experienced a serious correction, 4.25 range, and that we will resume moving upward, but it is difficult being optimistic in this market. Yesterday, the market attempted to rally again towards 110.00 as the OI came out. On the surface it looked like massive short covering and long liquidation but it was mostly spreads. Today, we may see again a drop in OI but of 85,641 lots that traded 49,294 lots were spreads and 9,304 lots were EFPs, leaving 26,937 lots outright. Still, it was sufficient volume for the range as stops were hit and good size buying took place by probably mostly commercials. We will see what 8:00 brings with a special eye on funds and the depth of market. For now the market is slightly steady.
Most currencies are down against the $ as the Sino/USA trade agreements are now contingent on China not using force with the Hong Kong protesters. BRIC currencies are also mostly lower. USDMXN is 19.4365 +0.1005 (+0.52%), USDCOP is unchanged at 3,437.1001 and USDBRL which closed at 4.1942 is valued at 4.1954 on the CME.
Bond futures are higher and equities lower. Metals are slightly higher as is crude. Sugar and cotton are also slightly higher while cocoa is lower.
I will be away for a while to tend to other business. Look forward to everyone posting.