Coffee again opened up under pressure as the commodity seems to trade largely in its own world vs its peers over the last couple sessions. The BRL weakness continues to send spec longs to the exits, allowing roasters to add cover 15clb below prices only last week. While the late intraday reversal is what will stick in the minds of many, the first 8 hours of the day featured unremarkable trading, with choppy conditions prevailing. A short lived open interest bounce carried KC away from its intraday lows, however the most interesting event of the day occurred in robusta where 5000 H 2050 C traded 101 laid up, with little initial market effect. Perhaps unrelated, an impressive spike in buying materialized in London at noon EST, followed quickly thereafter by a similar rally in KC. F/H was caught in the excitement as well as traded volumes in the structure were their best on the day, as the spread carried into positive territory. The BMF will be closed tomorrow; Brazilian clients report that it is for Republic Day, while the exchange’s website states it is in honor of Black Consciousness Day. In either case, there will be no active BRL contract.
The COT report showed funds to be net long 58,960 lots a net increase of 3,043 lots. The commercial gross long increased by 8,220 lots while the short increased by 12,071 lots for a net short of 104,808 lots.