Morgan Stanley Coffee Report- February 13'18

KC started the week trading in a 240 point, 120.80-123.20 range and settled .45 points lower at 121.40 basis the March contract.  Volume was a monster 102,312 lots, 90% of which was spread related. H/K traded 31,216 times into its tightest level to date of -1.75 under as shorts picked up the pace of rolling before widening out to settle at 2.10 under. Friday’s March Option expiration saw 9,193 puts between the 130 and 122.50 strike and 1,266 calls between the 105 and 120 strikes exercised.   Activity in the outrights was rather mundane as traders found little incentive to initiate new positions within a well tread upon 125-119ish range.  Open interest has fallen by 13,505 lots over the past 4 sessions, 1,000 lots more than it rose over the previous 4 sessions….and with the market closing essentially where we started 8 days ago, let’s just state the obvious …we remain range-bound.