Morgan Stanley Coffee Report

Rains are now a given in Espirito Santo, although the effects of the recent lack of precipitation are yet to be determined.  Headlines about re-importation of Conillons garner attention, although clarity is lacking.  London traded lower, yet managed to put up an inside session holding Friday’s low by all of a dollar.  Resting bids from industry were accommodated, as funds and trade were the day’s most active sellers.  The London COT report indicated the sideways market action over the reporting week was nothing more than met the eye, as funds whittled their record long position down by a mere 659 lots.  New York started the week under pressure aided in part by the COT report which showed that funds reduced long exposure by net of 238 lots despite the market losing 10 cents in value over the reporting period.  A new low for the move in Arabica found managed money on both sides of the market, while origin and industry were largely in absencia, with the former reluctant to sell weakness, and the latter comfortably covered in March and finding no urgency to add down the curve.