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Posted by Tango
on March 25, 2020, 7:21 am
The market managed to open higher to trade up to 126.65 but sell orders were lined up. Attempted rallies met the same fate and the market weakened and remains so. The flat OI that we have been seeing is likely due to funds and other spec short covering and commercials and other specs going short. The belief that consumption is compromised as suggested by hubblerock and polifar exists and is certainly valid. Itís just that the market is not reflecting a drop in consumption but quite the opposite as the prices are generally steady, and as spreads are trading at a premium and stocks continue to drop. Yesterday, activity was light with again elevated postings of EFP and EFS across the board. IMO there is consumer buying and origin selling.
Currencies are higher rendering a lower $Index while BRIC currencies are mixed with the Yuan lower. USDMXN is 24.58 -0.247 (-0.9949%), USDCOP is unchanged at 4109.88 and USDBRL which closed at 5.0992 is valued at 5.0870.
Bond futures are lower as are equities and metals after dramatic higher moves yesterday. Grains are higher, crude is lower, while the softs are higher except for cocoa, and coffee.
The market remains heavy but there is spontaneous forward buying. 8:00 has escorted buying. Letís see what today brings.