Morgan Stanley Coffee report -November 30'17

KC traded to its highest level in 7 weeks buoyed by technical and short term spec related buying as the market traded through the 3/8ths retracement of the yearly move and initially struggled as patient sellers took advantage of the rally in the face of a weakening BRL but found a fresh round of buying on the close. Prices traded to levels not seen since the 13355-13375 gap was formed on Oct 10-11th, running into resistance as we approached the 100 day moving average, a level we have not closed above since the gap was formed.  London in the meantime broke its streak of 7 lower highs, and 7 out of 8 lower lows (the 8th day being a double bottom), to take out the highs of the previous 4 sessions and score back to back $23 gains.  The strongest rally since November 2nd in NY leaves the first of 2 elusive overhead gaps (13355-75 and 13745-13770) within striking distance which if achieved will take us out of what has been a tedious 7 week, 875 point range.