Morgan Stanley Coffee Report

A quiet day from the commercial side as paper was limited from origin and roaster alike.  A 195 point range prevailed for the bulk of the day as the lows were set early in the European hours and the highs were set post-Robusta close.  For most of the session it seemed as though paper was simply shifting from spec hand to spec hand with little by way of intraday volatility to note, while the DXY and BRL  both did their part to keep certain sellers out of the market.  Arabica options were mundane at best, yet Robusta featured more notable volume with 2500 U 1900 C trading laid up, along with 250 lot chunks of X 1600 P and U 1650 P.  With little of interest in the outrights on the KC side, the most notable observation may be the 65 point range in the NU structure, as it weakened all the way out to -4.00 intraday on only 66 lots of volume.  The topic of the day was undoubtedly the Brexit vote that is finally upon us in the UK, with consensus emerging for the “Bremain” vote as quantified by the betting parlour and money manager flows.  Meanwhile, exit polls are not permitted in the UK, so most of the days reporting was anecdotal at best, and wishful thinking at worst.  It appears the divide between young and old, and rural vs urban, is wide and to some extent it may come down to who turns out to the polls.  Whatever the result, tomorrow morning should be interesting as the market speaks.