on July 28, 2020, 8:52 am, in reply to "Re: Total ICE Certified Coffee Stocks vs. Non Certified Coffee Stock"
In response to Isuzu’s question on spreads, right now several commercial traders are focusing on the ZH and some forward spreads which have been steady. There are also bids on options on spreads with strikes well above flat. However, stocks are not the only consideration. Spread positions, outright spec positions, interest rates maybe, are all also to be considered. UZ was also well bought by traders and it is now trading at -2.90 even with steady outright prices and U buying. This, while ZH is -2.00 bid. I don’t know the reasoning behind the behavior of spreads necessarily. But, it seems to me that if stocks are depleting as time progresses, then the more forward spreads should be at a higher value then the more proximal spreads. ZH is -2.00 (-66.7/month) HK -1.00 (-.50/month), etc. Thank you for your posts.