Morgan Stanley Coffee Report - August 7, 2020

Arabica futures caved 445 points, closing 118.95, the lowest price basis KCZ in 6 trading sessions.  Early returns were muted if positive, and prices took one last look higher, peaking at 125.75 at 9:16 edt, moments before the selling arrived.  Less than an hour later aggressive selling had sent futures tumbling to an off-the-moment low at 119.55, a 620 point loss in less than an hour, before recovering back above 122.  No further upside would be gained however as the 118.40 low traded going into settlement, finally settling at 118.95.  The balance of the day kept the market within a 100 point range with last print only .45 points higher.  Spread volume came in shy of yesterday  but was still prominent at 32,437, on the last day before the Index roll begins.  U/Z traded 15,766 times  with it tightening 30 pts from yesterday’s high before backing off with the rest of the market, settling down 10 pts at -1.95.  Certs continued to fall, losing another 20,797 bags (Antwerp) with US Stocks remaining unchanged and  no new pendings. Robusta followed suit with KC losing  $9 at 1353 with  U/X falling  $2, settling at +15  as it still remains in backwardation.