Sucden Financial Coffee Morning Comment

Good morning,
 
Both markets enjoyed MOC upside price action yesterday, Robusta rallied from 1770 to 1781 in the final 30 minutes of the session, whilst Arabica launched from 124 to 125.30 in the final 30. Structure volume in both markets was significant, although H/K London saw bigger price swings. The market will understandably be keeping a close eye on the London stocks, after yesterday’s 410 lot drawdown. Given the aggressive MOC buying seen on both terminals, this morning the pre-open is showing 1783 (+$5) for May Robusta, and 124.80 (+0.75) for May Arabica.
 
There was little in the way of direct fundamental news for Coffee, but in macro news, the US CPI report is due out today. Every economist surveyed predicts a slowing in headline, with consensus at 1.9 to 2.1%. . US & UK equity indexes rallied as Asian stocks followed. Treasury yields slipped as the Yen led most currencies higher against the dollar.