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Posted by Tango
on May 6, 2020, 7:32 am
Light volume and a narrow range define this mornings market as it struggles to regain the strength to move above 110.00 again. Striking prices will remain a factor until Friday’s expiration. However, due to a lack of density, resistance/support will not be as considerable. Spreads moved down in spite of the market strength yesterday. SepDec closed at -2.00 and is now -2.05 bid. Back spreads were steadier however due to forward selling. Yesterday’s 4.2 c range began with early lows and strength gained throughout the day. A cold front in Brazil will occur but it is reported more as a cool front rather than a cold front. What prompted the buying is uncertain but it was likely short covering. For now the market remains steady.
The $Index is again higher as all currencies, key and BRIC, as lower, except for the ¥. USDMXN is 24.10 +0.114 (+0.48%), USDCOP is 3,931.50 +7.92 (+0.20%) and USDBRL 5.6069 on the CME after ending in the spot market at 5.5753. It is +.0286 (+.514%).
Bond futures are lower while equities continue to gain. Gold and silver are lower and crude is sharply lower. Crude is reality and equities are hope. Grains are mixed while sugar and cocoa are lower and cotton higher.