Evening Coffee by Societe Generale

     New York coffee traded in a relatively narrow range contained within yesterday's as another morning of extremely-cold weather was seen in parts of Brazil. The London market, without the benefit of the cold, closed below its 40-day moving average for the first time since in just over three months.
     Sub-freezing temperatures were again reported in Sul de Minas, Brazil this morning, increasing the possibility of at least some leaf damage. Cool weather will continue in the same coffee areas the remainder of the week, but temperatures are not expected to be quite as low as today. - World Weather, Inc.
    July New York (KCEN6) settled midrange (49%), down 2.20¢. Volume was thirty-four percent above average at an estimated 61,585 lots including an estimated 749 EFP's, 53 EFS's, 461 TAS and 24,226 spreads. 6,716 calls and 9,646 puts also traded. The KCEN6-LRCN6 arbitrage: 60.86¢. Ratio: 1.8292. €: $1.1208-¾%. BRL: 3.4902/$-0.2%. CRB: -0.4%. Crude oil: -¼%. S&P500:-½%. Open interest: 187,166-1,525 (50-day stochastic: 40%; 125-day: 53%).
     July London (LRCN6) settled in its bottom quarter(18%), down thirty-one dollars. Volume was fifty-eight percent above average at an estimated 28,741 lots including 10,670 spreads and 1,571 EFP's. 1,395 calls and 1,536 puts also traded. Open interest: 101,318-945 - a nineteen-month low (50-day stochastic: 0%; 125-day: 0%).
     ICE Europe reports that managed money were net sellers of 2,792 lots of robusta coffee in the week ending June 7th leaving them net long 6,804. Swap dealers bought 1,113 lots (short 3,949). Other reportables bought 1,076 lots (long 9,321). Commercial traders bought 1,009 lots (short 14,848). Non-reportable traders sold 405 lots (long 2,673).
     Vietnam exported 161,988 tonnes of coffee in May, Vietnam's General Customs Department reports, up nearly fifty percent from 108,331 tonnes in May 2015. Jan-May exports were up thirty-nine percent from the same period one year earlier to 826,965 tonnes.
John Bernardi