Morgan Stanley Coffee Report

A strange start to the week for the coffee market. New York opened unchanged, within 5 minutes was trading 2 cents higher then reverted back to unchanged followed by another run higher to 14940 before US traders manned their desks.  Once currency markets opened the dollar initially strengthened on economic optimism which overshadowed angst after a failed coup attempt in Turkey and the commodity complex started to come under pressure. KC fell to 14485 (-270) and it appeared as if we were going to fill the 14435-14505 gap but that was not to be as the CRB started to  bounce off the lows.  Headlines about frost causing minimal damages in southern Sul de Minas were released coincident to the bounce in the commodity complex which caused coffee centric traders to ponder if we were trading higher in a delayed reaction to cold weather.   A new intraday high was posted (14975) in the final 20 minutes of trading which happened to coincide with the new intraday high in the CRB.  Paper flows were again concentrated amongst the specs and while trade keep an eye out for industry buying especially  as we probed the gap they were not participants of note.