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Posted by Tango
on January 3, 2020, 7:11 am
The market opened higher but as the session progressed the prices eased. Each tic seems like a new low with pockets of stops. 125.00 may present some support as a few bids are building up. The buyers here are likely commercials. Yesterday the market made a noble attempt to reach a high of 130.95 but it proved to be a magnet for sellers. Rallies continue to be potential opportunities. The one saving grace for longs is that the behavior of the market has been for sharp drops to occur and then recover. The market is no longer the one dimensional commercial vs. funds, imo. But we will see as technical signals seem to be pointing downwards. Spreads have been weak as warehouse stocks have coincidentally been stabilizing.
The $Index continues to climb and is higher against all major currencies except the ¥. BRIC currencies are also lower against the $. USDMXN is 19.0005 +0.1685 (+0.89%). USDCOP is 3,250.00 +1.00 (+0.03%) and USDBRL is 4.0253 -0.0007 (-0.0174%) with quite a disparity compared to the CME value of 4.0507.
Gold is up 24$ as equities are sharply lower. Bond futures are higher. Crude is sharply higher. Serious tension in Iraq. Grains and cotton are lower while sugar and cocoa are higher.
The market has now stabilized.