Blue Line = BRLUSD

In spite of quiet trading, the range was a respectable 8.20c. The net change of -.45 is evidence of the current state of randomness of the market. Although many traders are absent, funds continued their buying program while trade sold strength. There is no evidence of index rebalancing yet.

Since the COT period, prices remained choppy as the market apparently consolidated. Today weakness prevailed as the Real dropped. Support was present as the market approached the 120.00 general area and short covering was again evident at the close. Pre-close Real prices show a correction from today’s weakness. USDBRL is presently 5.2401 +.0236 (+.45%). USDCOP is 3,496.25 -16.5 (-0.4697%).

In Robusta the drop in OI is due to option expiration but the participation of players, fund buying and commercial selling, is the same as KC.

For the remainder of the year, we can expect prices to remain rangebound. The Real may be a factor as well as the $ itself. There may be window dressing and squaring of books as we approach the 31st.

Wishing everyone peace, good health and prosperity for the coming year.