Coffee never stood a chance today following a technical breakdown yesterday, a weak global investing environment, and a reinvigorated Bear. Roasters took advantage of the sell-off to add some much needed cover, though it seems that by and large most are willing to wait for a marginal move lower still before stepping in more substantially. Origin was steadily active pricing as reports of good physical activity is related by the trade. Robusta also featured an outside day low as the arb came in a bit in what must be a relief to those who have built a position based on the relative physical balance sheets in each market. The weakness in the London market does however serve as a reminder that it oftentimes has a difficult time separating itself from its sister market. For all the relief some are expressing in the relative weakness of the last two days, KC did nonetheless manage to hold above the uptrend line of support and mid Bollinger bands while still gaining 225 points on the week. There are always two ways to view a market’s performance, and with today’s COT number showing an increase in both longs and shorts, one wonders how much this will shade thinking coming in Monday morning.
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