Morgan Stanley Coffee Report - March 21'18

KC, 118.85, -.10,  traded a macro day for the bulk of the session, highly correlated to the DXY most obviously, but also the bulk of the commodity board.  Roasters bought into strength, yet origin stayed at bay for the bulk of the trading day.  Options were again uninspiring, led by less than 700 K 130 C while structure cracked a tick (KN -215)or two (NU -225) nearby.  Better than 1000 lots traded on the day’s most dramatic move at 9:27edt, taking price through 120, yet follow up was lacking and prices closely followed the dollar until 11:48.  A steady BRL appeared to ward off weakness for the following hour, yet in the end the dollar’s rally turned out to be too much for Arabica, punctuated as what could be kindly referred to as an “investment” in the settlement period.  Robusta, for all its chatter, settled down $2 at 1752 at the midpoint of a $17 range on just over 5k lots total down the board.