Morgan Stanley Coffee Report

After a 21 hour marathon session the Brazilian senate vote 55-22 in favor of impeaching Dilma Rousseff.  The now suspended president is not going down without a fight and vows to fight the process with “all legal tools” claiming to have committed no crime, that the impeachment is a coup and is a threat to democracy.  She also asserts the new government without an election has no legitimacy and that she will never give up fighting.   Vice president Michel Temer, now the acting president is  “very enthusiastic’ and acted quickly to appoint his staff.  The real weakened slightly (-.6% at print), but held relatively steady in light of the priced in news.  Arabica prices took out yesterday’s high as fund buying regimen continued, trading to 13070 (+(5 pts.) before backing off into high level  consolidation mode.  The prevailing view is that we are in the midst of a short covering rally in a range-bound market, which, following a 12 cent (10%) run up in prices, that happens to occur in the month of May, naturally attracts discretionary selling.