Morgan Stanley Coffee Report - February 3, 2021

Arabica posted a mildly positive session, gaining 55 points to close 123.95 in the front KCH contract.  Outright volumes were scarce, the lightest combined total in the front 2 months since Christmas Eve, yet aggregate volumes were only marginally below the 2 week average as spreads continue to be at the forefront of trading.  Structure was flat down the curve at the low end of recent pricing, HK -2.15, KN -1.95, KK -9.55, all unchanged on the day.  FX was of negligible impact as both the DXY and BRL fluctuated around unchanged levels.  Robusta too was spread dominated, yet a steady industry bid allowed futures to outpace her sister market, gaining $24 to 1323 in RCH.  HK turned over in its heaviest volume on record (5697x) while closing a 6 month low at -20, -1 on the day.  The roll is the clear focus in both markets with prices remaining rangebound on the KC side.