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Posted by Tango
on December 5, 2019, 7:00 am
Both markets opened at the lows and immediately firmed. RC however continues to be weak relative to KC. It would be expected for RC to lag on the downside as well as the upside but the arb, which closed at 59.11, is now 59.67. Yesterday, the anticipated correction evolved as the market seemed to get overcrowded by longs. The question is what next. There is no sign of weakness this morning as prices are making new highs. The depth of market is unremarkable but buying is present beginning at 120.00 including in the forwards. Forward selling is light as it was yesterday and itís likely that buying will continue at 8:00.
The $Index is lower as mostly all major currencies are higher. BRIC currencies and LatAm currencies are mostly higher as well against the $. USDMXN is 19.407 -0.0185 (-0.0952%), USDCOP is 3,468.00 +0.50 (+0.01%) and USDBRL is 4.2074 -0.0003 (-0.0071%) while the CME shows a value of 4.2028.
Bond futures are higher, metals are around unchanged and equities are higher. Crude is higher, sugar unchanged and cotton and cocoa are higher.
KC failed to advance and the market is mostly waiting for 8:00.