Morgan Stanley Coffee Report - February 15'18

Coffee was again a mere leaf blowing in the macro winds, settling up 5 points at 125.10 after trading tick to tick with the Dollar index from 8:20 EST onwards.  The CPI number set the tone for the trading day as intense focus hones in on inflation risk and the theoretical responses of central banks. Brazil was a noted seller on the day, irrespective of a 2% gain in the BRL, as shippers are forced to fix ahead of FND.  In BRL terms, the recent spate of Brazil selling has coincided with the best price in KC/BRL terms since January 9th, and with intraday prices between 402 and 415.  Spread volumes were good post-index roll, yet the bid / ask never moved, spending the entirety of the day -230 / -225.  Robusta continues to ascend in tiny increments, posting a 5th positive day and 9 of the last 12, settling up $4 at 1782.  The K 1800 strike was the object of desire on both the put and call front. Around 1500 K 1800 C traded 53, delta neutral, and 1000 K 1800 P traded 67, laid up as well.