Morgan Stanley Coffee Report - Dec 17, 2020

Arabica posted an unchanged performance (126.60) on the lowest volume of the year in both spreads and futures.  However, outright implied volume, while below average, was larger than Dec 8, Dec 9, and just below Dec 3 reviewing this month alone – the day was not meaningless.  Prices gapped higher on the opening as the Dollar fell on a somewhat dovish Fed report, yet selling started building by 5am.  Each successive wave of recovery was met by more selling and KC ended up one of the weakest commodity performers on the day.  Certs declined 4056 bags to 1,371,566 bags, led by 3736 bags of Hondurans in Antwerp, while pendings rose 8100 bags to 70,310 & no coffee was graded.  HK weakened a tick to -1.90 while HH was unchanged at -7.40.  Robusta, the beneficiary of late buying, gained $9 to close 1387.