Jurgens Bauer’s Daily Soft Market Comments
As year end and the holidays approach it appears as if decision making is at hand. Soft markets responded to outside influences, moving lower in early dealings before finding support and staging rallies. Some were more successful than others, depending upon traders expectations as well as their fears. Coffee prices found support and had the biggest rally, triggering buy stops in March above 110 and 110.65 (fears that the short side wasn’t the right side?), so that March made it swiftly up to 112, but there was no follow through which led to another sizable retreat. March backed on down to 1008.50-ish before chopping away between 10950 and 11070 into the close. Direction positioning seems to be a real issue, especially with option expiry on Friday.
At today’s auction, T-Bill rates were zero, which speaks volumes about investor fears.
Coffee Resistance 111.65-112, 114-115. Support 106.80, 105.10-104.90, 101.35. Looks headed lower, but watch for violent spasms like we saw today.
Cocoa Resistance 2310-35, 2410-20 Support 2220-2200, 2135-2115, 2050.
I like this market and favor the long side, but use caution and own calls.
Sugar Resistance 1138-44, 1155-60, 1205 Support 1085, 1060, 1044 The H/K spread narrowed signaling to some that business apparently may be getting done.
Cotton Resistance 4500-4550, 4640-60 Support 4270, 4200, 4100-3923
Cotton prices dropped slowly throughout the session. Cotton may need to retreat to stimulate business. The recent strength in NY hasn’t been felt in foreign markets. I remain bearish on cotton
Etiquetas: algodon, azucar, cacao, cafe, commodities, jugo de naranja, mercados, mercados derivados
