Morgan Stanley Coffee Report

Another First Notice Day in the books with a relatively small number of certs crossing primarily from one hand to another.  Thin OI effectively ensures small intrigue going forward in notices.  KCZ posted a 4th consecutive day of higher highs & higher lows on pitiful volume that more than one trader termed “boring” over the course of the session.  The dollar may have provided some support, while a weak BRL did little to encourage sellers either of the hedge or system variety.  Robusta suffered spotty participation as well, however in the absence of flow the market found itself posting an outside day reversal, closing $10 lower.  The CRB was firm as expectations for imminent action by the Fed were tempered ahead of comments from Chairwoman Yellen, who is currently attending a global summit in beautiful Jackson Hole, Wyoming.  Several market participants released comments of varying substance, yet all were taken in stride and seemed to continue the trend of having little impact on KC prices.  It will be interesting to see what, if anything, motivates traders as the larger markets await further insight on interest rates.