BLUE LINE = BRLUSD
The market began at the highs and dropped 16.20c to end 13.50c lower from the previous COT close, quite a contrast to the days following the report where prices rose16.25c and ending near the highs. Activity was light and ranges narrowed by the end of the period. In Robusta, commercials we’re sellers in a down market while in Arabica activity was more familiar as commercials bought. This pattern, of commercials buying drops provides support but also increases resistance on strength.
The days following the report showed a very strong market but with very light outright volume. Apparently, there was talk of dryness in the coffee growing areas. However, the dryness is an early start of what is normal for this time of the year. Still, some rain would be welcome. Spreads were slightly steady, except for NU.
The market itself closed in a firm way. Whether it will continue to go up or not will be interesting to see.
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