Morgan Stanley Coffee Report

Downright lethargic trading on both sides of the pond with London trading a $20 inside session and New York lacking the momentum to trade a 5th day of  higher high’s.  New York traded its lowest volume of the year, as traders struggle to find a reason to believe in a midrange market, while consensus appears divided over whether the next 5 cent move is higher or lower.  The most logical catalysts for the discretionary trader to take action  go wanting, as uncertainty and confusion swirls about the Robusta re-importation saga, precipitation is slated to return to Brazil’s coffee belt and the real holds steady in a firmer range.  Technically New York flirts with the 15315, 100 day moving average, and while the MACD  crossed positive 2 days ago, it has failed to attract upside momentum.  For those interested in statistics a footnote…. the 2 year average gross commercial long position is 82,673 lots vs. last week’s position of 60,581 lots.  The gross commercial short 2 year average is 117,862 vs last week’s position of 116,930 lots while the 4 year averages are 69,116 and 112,443 lots respectively.  Here’s hoping for a break from the tedium!