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WEEKLY REPORT – COFFEE MARKET IN BRAZIL

por jun 19, 2020Coffee59 Comentários

Dear valued partners,

 

Coffee sales for export are at a lower-than-normal pace surrounded by market uncertainties. Weak currency in Brazil recovered a little bit during the last week from the record devaluation (R$ 5,74) faced on April 24, 2020 amid political tensions in Brazil.

 

Coffee prices on the NY stock exchange fell by dollar movements and concern about coffee consumption during the pandemic.

 

The logistics in Brazil are still flowing well, despite some atypical adversities. Shipping agencies are all working from home, so there is a longer delay for booking confirmation and document release.

 

The withdrawal of containers is taking longer than usual and there is some difficulty with food grade containers vailability. There are reports of delays in the flow of vessels and omissions in some ports.

 

The most common practices adopted by coffee growers to prevent the spread of COVID-19 during harvest are:

• The use of masks;
• Hand hygiene with soap and water (if not available, use a hand sanitizer with at least 70%
alcohol);
• Distance in the means of transport;
• Disinfection of the vehicles on a daily basis;
• Hiring workers who are out of the risk group, from the local community, without symptoms of the disease and with preference to those who have their own vehicle.

 

The near-term supply is tight as a between-harvest period. We are optimistic about reaching a new record crop in Brazil. With the harvest knocking on the door, growers were more confident and calling exporters for futures sale. In mid-May, most producers from different coffee regions will start harvesting.

 

In some humid and warm regions, the harvest has started and there is already a very timid offer of 20/21 available. Let’s keep believing and investing in the coffee culture so together we can keep moving coffee
forward!

 

Stay well!

 

Atlantica Coffee team

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