Morgan Stanley Coffee Report - April 19'18

The BRL served as a weight on KC (116.60, -.55) throughout the day, as gains in both the currency and coffee market achieved yesterday were wiped out in slow and steady trading.  Roaster bids kept a floor under Arabica for part of the morning, well after the BRL has begun its most significant decline of the trading day, and once that need was filled KC fell 65 points on better than 700 lots of selling.  Beyond the programmed selling the day was centered on cleanup of KCK18 positions.  K based AA’s (as well as N) clocked in at better that 7500 lots, and KN traded 13k times to make up  the bulk of the volume.  Robusta remained above the bulk of the moving averages at 1767, -5, as the ARB closed 36.4, near the tightest levels since September.