Morgan Stanley coffee report - July 24

Arabica closed the week 108.40, +90, wiping out early weakness.  The weak USD was a boon, and while KC has shifted into heavily overbought territory on the oscillators, aggressive selling has yet to appear.  On a weekly basis prices appear to have made a convincing breakout, posting the highest weekly close since May 8th on both the KCU & KC2 charts.  Volume was strong again, a second consecutive day of high turnover inside a relatively tight range for the size.  U/Z again disappointed, weakening 10 points to -2.90, while the rest of the curve tightened, Z/Z in to -6.20.  Robusta gained $8, closing the week 1358, the highest weekly settle on the continuation chart since January 3rd.  Funds covered an astounding 15,584 gross shorts in London, the second largest 1 week change on record.