Morgan Stanley Coffee Report

A quiet month end in coffee nonetheless held above the lower Bollinger band as well as the mystical 120 level.  Coming into the day the scene was well set for a positive performance, as the BRL shook off another bout of reverse FX swaps rising to its strongest levels since last August.  The COP similarly continued its romp higher, as the central bank hiked rates 50bps to 7% and urban unemployment fell.  Meanwhile the commodity complex in general found willing buyers in the burgeoning “risk on” environment.  Options in both markets were quieter than they have been, though by no means dead, as the KCN 115 P traded 900 times on the day, and the M 115 P another 400+ as nearby protection is sought.  Active spreads were little changed in either market.  US  IRI data reported by Bloomberg showed positive year over year retail sales growth of 4.4% in volume terms.  Robusta will be closed Monday for Labour Day, while Tuesday will also be a holiday in Vietnam, as the nation celebrates tomorrows Unification Day belatedly. 
ICO shipments for March came to 10.39m bags vs 10.28m a year ago (+1.0%).