Morgan Stanley Coffee Report

New active month contract KCZ has traded in a 945 point range for 13 days, with today’s close falling within 4 ticks of the midpoint, punctuating the lack of conviction amongst traders.  Volume was again propped up by spreads as 23,066 cleared in Arabica, with just shy of 13k coming from UZ.  Robusta has been even more indecisive, as a sub 1clb equivalent was posted.   Early session weakness seemed non-specific to coffee as commodities lagged overall and a shortage of motivated buyers conspired to drive prices 300 points lower to 142.25.  However, the BRL again asserted its dominance and equally disinterested sellers stepped aside, permitting a 2.5 hour slow ascent to the day’s high of 145.90.  Brazilian sentiment was positive on a combination of positive retail sales and the commencement of Senate voting on whether to bring President Dilma to trial in the next step of the ongoing impeachment.  An appeal is expected following tomorrow’s projected result.