Morgan Stanley Coffee Report

KC was on its own today as robusta was closed to celebrate a bank holiday.  Early weakness prevailed for the first 90 minutes of trading before  the market turned sharply higher, trading +240 and +235 points intraday over roughly a 2.5 hour period.  Interestingly coffee seemed to follow sugar more closely than anything else, with the BRL correlating well, yet lagging the commodities themselves.  Sugar, Coffee and OJ spent much of the day amongst the best performers in an otherwise bumbling commodity complex, and while the several of storms in the Atlantic basin could provide a theoretical support to OJ, the lack of reaction in crude suggests otherwise.  Perhaps more relevant is the status of Brazil as the top producer of all three softs on a day when Dilma Rousseff defends herself on the stand during what should be the final salvo of the seemingly endless impeachment process.  The COP fell around 1% as GDP rose 2% YoY in  the 2nd Quarter, the slowest rate of growth since 2009 while the central bank balances the attempts to stimulate the economy, while inflation is at a 16 year high.