Morgan Stanley Coffee Report - November 13'17

Arabica closed the week in fine fashion, posting a closing print (KCH 130.90 +1.10) well above the previous intraweek high and settling less than 2 ticks below the upper Bollinger band.  Spreads again dominated the day with 29,536 total on the day and total futures volume of 73,591.  Z/H traded nearly 19k times as OI officially rolled into the March contract.  Both the UBB and the abundance of option-expiration related selling capped the market in a day of mixed commodity trading. Robusta settled down $8 at 1816 for the session amidst terrible volume.  The 5860 lots of total trading were exceeded in futility over the prior year on only 3 occasions – one of which was US Independence Day, another the Friday before Christmas break.  That figures to change come Monday following the release of today’s COT which revealed 8322 lots of net Managed Money selling as the short cohort grew by 9.  Short funds now outweigh longs by a better than 2 to 1 margin.  The current net -15,057 number is the largest since March 15, 2016’s report.  Meanwhile commercials added 7715 lots of net length as 2 traders appeared to flip from short too long.  The net commercial long of 13,191 comes in at the longest since April 12, 2016.