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Posted by Tango
on March 12, 2020, 6:47 am
The market opened sharply lower, almost 2 cents below yesterday’s close and with a 1.15 c opening range. Buying came in and then more selling. Segments of global economies are coming to a halt each day and markets are reacting, with a dose of panic. Coffee is obviously affected as the Real drops and as other investments are liquidated, including gold, whether directly or indirectly linked to the CVirus. Yesterday the market began by looking very promising but prices deteriorated as the day progressed, with occasional signs of strength. The market remains unpredictable and sporadic. Prices have just firmed to 110.00.
The ¥ is higher against the $ but every other currency, including the BRIC, is lower. USDMXN is 21.953 +0.5725 (+2.68%), USDCOP is 3,887.25 -1.19 (-0.0306%) and USDBRL which closed weak at 4.8136 is worth 4.8783 on the CME. It seems that whoever is buying KC is ignoring the Real.
Bond futures are higher while equities are sharply lower, metals are lower, crude is sharply lower and the softs are all lower.
For now the market is steady. Yesterday part of the pressure was brought on by origin and we will likely see more of it today. 8:00 is a coin toss.