Morgan Stanley Coffee Report

Momentum buyers continue to challenge discretionary skeptics, as coffee maintained its ascension towards the upper ends of the range for most of the day.  Roasters were engaged, however the prime driver is system and macro strength buyers as money flows continue to find their way into coffee.  KC plummeted shortly after noon EDT, triggering short term stops during far and away what was the best volume of the trading day.  All was not lost as KC briefly returned to positive territory before closing marginally lower, ending a period of 9 consecutive days higher.  Origin was notable for the first time in recent sessions as Brazil begins to catch up on covering their reported historically high pre-season sales.  The BRL was steady as the new BCB President was formally announced, with confirmation by the Senate presumed to be a mere formality.  Option volume was again chunky, with over 14k trading hands and a relatively even split between calls and puts.