Commodities: Exiting Long March Coffee View

We have decided to close out of our long March Arabica Coffee view, as the bullish picture seems to be deteriorating on the back of general market weakness. We closed the view for no gain. Going forward, we do not rule out some gains for March Coffee, but it will likely face stiff resistance around the USc145.00/lb area, and will remain susceptible to additional downside as markets remain weak. Given these dynamics, we do not think the risk-reward ratio is favourable at present.

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