Morgan Stanley Coffee Report

A choppy session overall, but in the scheme of things, the coffee market continues to find underlying support as systems remain engaged on the long side.  A bias exists from short term specs and managed money to be buyers of intraday dips as the effects on quality due to heavy May rains are yet to be determined.  Industry were noted participating as buyers in New York and London, as the Arabica market traded a fourth session of higher lows and a new high since last Thursday’s  13 month 14685 high inspired roasters to take on some “just in case” cover.  Prices hover around the upper level of the range of the past year where it has struggled to have staying power.  Supported forces in the macro arena certainly have been hard to ignore as dovish sentiment weighs on the dollar from a rate perspective, yet one week ahead of the Brexit decision the appetite for risk has lost some enthusiasm.