Coffee again succumbed to aggressive spec selling, settling 135 lower at 106.70, the lowest level since Dec 10, 2013. Since last September’s rally back above 140, the narrative has centered around the bearishness of the Brazil crop upon us. With prices marching steadily lower, momentum has fed on itself in a continuous loop, to the point where the crop itself has become a non-primary motivator, and today was a perfect example of that. Roaster & trade house spec buying were both apparent throughout the session, yet the rollover gap from July 19th was finally filled by a single tick, a 2 week old objective of some. Unlike recent days the currency markets seemed to hold little relevance. U/Z weakened again, closing -3.40 (-.15). A surprise OI reading of +9690 on yesterday’s 270 point range was taken by most as primarily a mix of pre-roll spread jockeying, additional fund shorts, and additional roaster longs. Robusta again was a sideshow, trading in minimal outright volume while falling $6 to 1644.
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