Despite the fundamental reasons attached to (any) market travel, OI reduction into higher prices is a bearish signal. In the case of KC this week, I'd expect it to be particularly so if it shows that the speculative buying higher was addressed by commercial selling. A continuation of a fact pattern that rallies in coffee are being capped by fundamental sellers.
To be clear, the intention is not to make a bearish call on the market at large, only to share some thoughts on how the COT will likely read when married up with the recent market movements.
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