Morgan Stanley Coffee Report

Early relative strength in coffee paralleled that of several other commodities as KC, RC, SB, SB and others moved in a similar pattern during early European hours.  Judging by volume and volatility alike, the 8am EST hour seemed to turn on American based systems, and the recent day’s liquidation continued.  The best volume of the day traded on the move to the low just before 9am, where a substantial iceberg buyer supported Arabica.  Perhaps coincidentally, the largest option trade of the day went up around the same time, as paper sold 1000 H 165 / 155 PS delta neutral at 630.  Commercials seemed quiet overall from our vantage, with spotty roaster buying appearing during the day with little from a well-sold Brazil.  Central America is by and large sidelined, taking what many there are terming a wait and see approach.  More postings of nearby shipments out of Honduras for exchange delivery are spoken of, and with little else on the immediate horizon, one imagines this topic will be closely watched as we approach end of year.  1000+ lots of November Robusta OI remain as only 1 lot of volume traded and two days left until contract expiration.
The N.Y.  COT report showed non-commercials to be net long 49,076 a/o 11/22 , longer than market expectations.