Morgan Stanley coffee report - June 2

Arabica lost 10 points closing 98.20 after a session of mostly positive trading.  Early hours were quiet and spec selling was noted at 8am, but the weakness was short lived.  Motivated buying arrived shortly around 9am, pushing prices steadily higher for the following hour. KC tracked the BRL for the majority of the day, which of note has strengthened over 13% since early May  but lost some footing leading into the settlement period while giving back 1.45 into the day’s end.    Volume was well below the past 2 sessions with only spreads really standing out, suggesting most traders are maintaining their wait and see attitude.  The spot N/U remained firm ahead of the approaching index roll, gaining 15 points to -1.55 while the rest of the curve saw pressure; U0/U1 weakened 35 points to -9.05.  Robusta  ended the day +$20 at 1179 settling back above the downtrend channel and posting its first higher high and low in 5 days.