Morgan Stanley Coffee Report - February 22'18

 
A fourth consecutive close in the red for KC, settling down .80 points at a fresh contract settlement low of 118.90, just .15 points above the 118.75 contract low in May.  Open interest over the COT reporting week has decreased by 8,941 lots as the market fell 535 points into yesterday’s FND.   While the open interest decrease can likely be attributed to FND clean up, price action alone suggests a good chunk of those fund shorts have been piled back on.  The most notable option trade of the day was paper selling 1225 of the Dec 140 calls laid up with 128.10 carrying a 37 delta at 555 points.  Origin noted stopping themselves out again while industry nibble lightly as a matter of course.  Sentiment continues to worsen, yet it is reported that the darkest hour is just before the dawn!