Morgan Stanley Coffee Report - April 17'8

 
Coffee settled 115.85 -.70 in choppy trading as FND sits a mere 3 sessions yonder.  The Euro hours featured consistent pressure, though a short lived macro bounce provided early US support.  While option activity was on the uptick, there is little new to say about the futures as origin kicks the can forward on hedging if possible and roasters slowly scale in cover at attractive prices.  Having pierced the 115.50 low of June 2017, the 113.35/113.40 double bottom of 1Q16 now looms as a reasonable target.  Robusta was in its own universe today, settling $25 higher at 1754 supported by a burst of buying that carried prices $19 higher on less than 300 lots of interest.  Meanwhile spreads went took divergent paths as KN fell $11 to -39, while forward structure tightened (NU 14 over +3. UX at level +3 as well).