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Posted by Tango
on January 31, 2020, 6:49 am
The opening was promising but only for a few minutes. The market has been slowly drifting as it approaches 100.00. Bids have lined up in March and in forwards. Yesterday’s attempt to rally was likely due to one of the spec sectors either covering or going long but once they finished the methodical selling resumed. Throughout the weakness that we have seen, the MarMay spread has firmed to -2.20 bid while other spreads have remained the same. As we know spreads usually drop in value as the front month drops or when warehouse stocks increase or when specs are long as we enter into notice season. All these 3 events are occurring but the spread is steady.
Key currencies are mixed rendering a positive $Index. BRIC currencies are also mixed with the Yuan down again. USDMXN is 18.8355 +0.0629 (+0.34%), USDCOP is 3,409.50 +0.50 (+0.01%) and USDBRL closed at 4.2430 and is now 4.2648 on the CME.
Bond futures are higher again. Equities and most metals are lower. Crude is higher as are sugar and cocoa. Cotton is lower.
The market is weak, quiet and well bid. It is the end of the week and month and squaring of books may take place by some.