Morgan Stanley Coffee Report

Coffee spent much of the day waiting for the final word on Dilma’s impeachment saga, yet in the end it didn’t seem to matter.  A quick rally in the BRL lost steam and by KC’s close the currency was trading on its intraday low.  It seems that month end buying was prevalent, with the few treks into negative territory finding willing buyers, and clear buying ensuring there would be no surprises just before the settlement period.  It is interesting that coffee was one of the few positive performers in both commodities and equities as it extended a 5 day run, while crude sits -3.5% and sugar -2.25%.  With a flat dollar, and flat BRL, and month end, one hopes tomorrow doesn’t become another day in holding pattern waiting for Friday’s jobs number.  Tomorrow is FND in Robusta.