Morgan Stanley Coffee Report

A 95 point session with a double bottom at yesterday’s low of 12120 basis July. Volume was decent at 39,074 lots with 15,536 spreads accounting for the lion’s share of the day’s volume. July/Sep traded 8,000 times between -195 and -185, another 2,000 July/Dec traded between -475 and -455 under and 2,800 Sep/Dec changed hands between 285 and 275 under.  A surprising 3,448 lot increase in open interest is indicative of funds adding shorts while the grind lower in price action proves there is a willingness from industry and short term specs to absorb the selling.  London traded in a $16 range at the lower end of the recent sideways range yet similar to New York a new low of only $1 failed to attract momentum to the downside. Tomorrow  could provide some greater volatility as both markets will be closed on Monday for Memorial day in the States and the U.K.’s Spring banking holiday.