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Posted by Tango
on June 19, 2020, 7:16 am
Buying at the opening has sustained prices for the morning. The market remains quiet. Yesterday volume was high due mainly to spreads. Buying of fences on spread options continues. Yesterday it was the selling of the DecMar -2.50 put and buying the -1.50 call. Thousands of such fences have been done throughout the month. In addition there is a GTC buyer of the DecMar +2.00 strike. The spread is trading at -2.05. Whether this buying of spreads indicates a bullish sentiment for prices is in the eyes of the beholder. But it is bullish for spreads themselves as warehouse stocks continue to dwindle. As to futures, the same picture as depicted by the COT continues. Funds appear to be selling as other specs buy while commercials buy weakness. 8:00 should bring more of the same.
Key currencies are mixed and rendering a higher $Index but the BRIC currencies are all higher against the $. USDMXN is 22.6256 -0.1162 (-0.511%), USDCOP is 3,746.45 +2.81 (+0.08%) and USDBRL is 5.3584 on the CME, -.0193 (-.36%).
Bond futures are mostly lower. Equities are higher as is crude. Metals are higher together with grains and the softs, except for cocoa which is lower.