Morgan Stanley Coffee Report Feb 25, 2016

Range bound  activity with the low of 11590 made on the opening, the high for the day of 118.85 coincident to the opening of U.S. equity markets and the low revisited on the close.   An inside session saw the market find support three of the four times prices approached 11600, however settling just off the lows defines the support as tepid at best.  Overall a very quiet day with the  most active trade in options being 836 July 135 calls trading at 281 points. The real held steady, advancing  .4% to 3.95$/r, as crude oil held yesterday’s gains, and support grows for impeachment proceedings against President Rousseff, based on the latest Carwash probe.  London  traded softer in sync with New York with the low for the day of 1342 only $3 above the 21st of January’s, 57 month low basis the second month chart. While coffee waits for the tide to turn, more excitement noted in its sister products as sugar prices surge the most in 22 years and cocoa extends its longest rally in 3 months on supply concerns.