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Posted by Tango
on December 11, 2019, 7:05 am
Major buying took place in both markets as KC opened. RC retreated back registering an arb of 70.17 after closing at 67.39. The JanMar there is trading at 20 with a high of 40. KC is off the highs but well above settlement. Yesterday, prices spanned 6 cents with a close almost 5 cents higher. The strength of this market is astonishing. It is fair to say that there has been a great deal of selling, mostly by commercials, as prices rose, in the front month as well as in the forwards. Yesterday, activity took place in every month in the form of EFPs, EFSs and direct trading, extending out to Sep22. The buying is is a combination of new managed money and short covering which triggers buying from other shorts including delta shorts. Where it will stop nobody knows but for now the market continues to shine.
The $Index is higher as most major currencies are lower. BRIC currencies are also lower to some degree or another but the LatAm currencies seem to be holding up.. USDMXN is 19.2284 -0.025 (-0.1298%), USDCOP is unchanged at 3,403.50 and USDBRL is 4.1466 -0.0001 (-0.0024%).
Equities, bond futures and metals are all higher. Crude and grains are lower while sugar is unchanged and the other softs lower.
Market is now correcting.135.00 last.