Arabica settled unchanged at 102.40 in one of the choppier days of recent trading. A higher high and higher low was posted, yet a mere 175 point range emerged and KC spent the entirety of the day pinballing from side to side. Short pressure continues to emanate from the spec community, exacerbated early by an hour long early morning weakening in the BRL (3.7280 to 3.7725 before most had settled into NYC desks), while commercial value seekers continue to build a wall of support into the lows. Spreads were fairly firm on a recent history basis, HK again trading into -3.05, though the spot structure settled unchanged a tick off the low (-3.15). Stubbornly deep contango remains a worry to some who otherwise may be more enthusiastic buyers, having been burned in efforts to apply logic to the carry into new lows time and again. London was typically dull, settling down $4 at 1535 in an $11 range. Some arb activity (long our side of the pond) is afoot at current levels, but the dreadful inaction from roughly 930am til MOC selling arrived suggested that more than anything disinterest rules the day.
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