Morgan Stanley Coffee Report Feb 10, 2016

A steady session with all eyes on Janet Yellen’s testimony in front of congress in which she signaled the path of future rates hinges on whether financial market turmoil persists .  The low for the day was a tick below yesterday’s (114.55) while the failure to attract any follow through encouraged broad based industry buying, primarily in the May contract.  Once the low was posted at 8:30 EST the up side was restricted to 11530 as Brazilians returned from carnival festivities to find the real opening on the defensive.  An unchanged settlement on the day and a 155 point range describes the lack of action in the outrights while March/May actively change hands in a -215 /-195 range as open interest shifted over to May.  March options expire tomorrow. The closest strike with open interest of note on the call side is the 120 strike with 2,065 lots,  while the 115 put had 1,919 lots open entering the day .