Morgan Stanley Coffee Report - May 23'18

Arabica fell 150 points to settle 119.35 in unremarkable trading.  Prices slipped throughout the European hours in “risk off” trading, and the entire range was in place by 8:30EDT when a quick 1000ish lot selloff sent prices to the day’s low – yet found no follow through.  The DXY seemed to be a weight on the day, but more than anything boredom seems to be overcoming traders as prices retreat to the well-worn range.  Options were fairly quiet after yesterday’s monster session, although there was some notable if esoteric paper around; nearly 600 N 137.50 C / Z 95.00 fences traded at a 6 point premium to the put, and a couple of apparent rolls came in with similar quantities.  London traded a nearly perfect layover with KC before diverging lower with chunky MOC selling painting the close.  RCN settled 1751, -39 as N/U slipped to 10 over under late day pressure.