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Posted by Tango
on February 28, 2020, 6:56 am
Almost 1,500 lots traded in the first few minutes of trading. Bids were obviously hit but the market resisted from dropping further and recovered over 2 c from the lows. The market is performing well considering the many burdens it is carrying. Production estimates continue to show an abundance, the coronavirus is causing some fallout in the market and the Real continues to drop. Yesterday, the market made several moves higher only to find eager selling, mostly by longs and delta hedgers. Origin does not appear to be active in far forward months but considering the Real weakness there could be selling in the middle or front months. Spreads are slightly softer.
Key currencies are mixed but rendering a lower $Index. The Yuan is higher but the remaining BRIC currencies are lower. USDMXN is 19.7238 +0.2158 (+1.11%), USDCOP is unchanged at 3498.50 and USDBRL which ended at 4.4861 is showing a value of 4.5296 on the CME, +.0435
Bond futures continue to climb. Equities are down but off the lows. Metals are down and showing some fragility. Oil continues to drop and grains are lower. The softs are all lower. My entire trading board is red except for bond futures and a few currencies.
KC is trading above 109.00 now. 8:00 may bring buying but resistance is very strong by longs.