Morgan Stanley Coffee Report - February 16'18

KC settled a cent lower at 124.10 basis May while activity in the outrights was downright mundane. A 190 point range on the day was within the 385 point band we have traded in over the past 7 days and the 690 point range we have been stuck in for the last 27 trading days. Total volume of 59,583 lots included 24,291 spreads of which 14,986 were HK’s between 240 and 220 under as positions are rolled and/or squared up ahead of Tuesday’s first notice day.   Robusta attracted renewed focus as CSO’s started trading and for the first day of a launch trading was rather active. The first trade posted was the KN -30 put trading 110 times between 5-9 points, followed by 850 KN 0(flat) calls trading at 3 points and 1210 KN 5 under calls at 6 points. While KN traded between a $23 and $26 discount, HK traded to a $35 premium and has doubled over the past 2 weeks as certified stocks have fallen 25% over the past 2 months and GCA/ECF stocks have seen a steady decline.