Morgan Stanley Coffee Report - March 20'18

Coffee fell 40 points on disinterest, settling 119.95 basis K.  A 100 point rollover gap now exists basis KC2 as KCH rolls off the board.  Roaster buying provided key support throughout the session, though by 10am EDT a familiar currency centric pattern settled in for the day.  Spreads were unchanged as KN remains firm, closing -210 on <1700 lots of volume.  Options too were muted, led by 500ish K 135 Calls.  Of greater intrigue was the 85 point investment in 200 Z 200 Calls.  London slipped 3$ to 1754, fairly in line with many of the recent moving averages.  Spreads were quiet on that front as well as K/N fell a dollar to -29.  Good luck to everyone in the Northeast USA – looks like you have another fun snow event on your hands.