BLUE LINE = BRLUSD
The market recovered from the previous week’s weakness after making a low for this COT period of 184.85. Prices proceeded to climb and, on Monday, while the Robusta market was on holiday, the market shot higher to break the 200.00 price and make a high of 201.55. The general 200.00 area proved to attract, or intensify, selling to drive prices back down to end at a respectable 10.15 higher.
Because the market reversed on the very last day of the COT report, it clearly shows which sectors were the the drivers to higher prices. In both markets, funds and small traders bought while the other sectors sold. In KC, the selling by commercials came in the form of put buying. The remainder of the week, brought several attempts to revisit the 200.00 area but also resulting in a lot of pressure. It appears that any signs of strength result in avalanches. Still, it seems that the market is once again consolidating in the 190.00 general level. It may revisit Nagual’s support level of 187.85, more or less, but it appears that there are plenty of buyers in the midst.
Forward selling continued at higher levels in the form of EFP and outright trading. Selling did subside at lower prices, and as the Real strengthened. And so spreads reacted in a negative way, slightly. It seems that the lockdown in Viet Nam that is freezing transportation and affecting RC spreads is not presently a factor in KC. There continues to be a lack of forward buying, usually attributed to the consumer sector. Monday is a holiday in the US but RC is open.
« Back to index