WEEKLY REPORT – COFFEE MARKET IN BRAZIL | Atlantica
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+55 35 3222 0495 Av. Princesa do Sul, 1885 | B. Rezende, Varginha, MG, Brasil | CEP: 37062-447

WEEKLY REPORT – COFFEE MARKET IN BRAZIL

por jun 19, 2020Coffee16 Comentários

Dear valued partners,

Real hits new record low near R$5,97 per dollar as per political and economic crisis intensify. With all the uncertainty and Brazil’s international distrust, the credit lines here are more expensive and rare.

 

Despite the pandemic, the volume of coffee exports from Brazil in April surprisingly climbed 2,5% compared to April 2019.

 

Harvesting of the new crop is still going on smoothly in Brazil with some batches already available but yet a high leakage. COVID-19 is slowly advancing into the countryside, which is worrying, especially in the harvest season, when there is an intensive demand for labor. Basically, there is no current crop stock, the weaker real and NY highs favor coffee producers who still have some lots left.

 

On logistics, some space difficulties and route reductions due to blank sailings in maritime transport are becoming part of the scenario for some destinations. Therefore, it is essential that we can count on the collaboration of our customers in sending documentation in advance to avoid shipment delays.

 

Traditional coffee consuming nations like Italy, Germany and the UK are starting to lift lockdown measures, while maintaining distancing and evaluating the results.

 

On the other hand, Brazil registered 844 deaths by Covid-19 in the last 24 hours, a new daily record, and total amounts to 14k. Over 20 Brazilian cities have adopted the lockdown, in an arm wrestling with president Bolsonaro who fiercely defends the quick reopening to stop the deterioration of the economy.

 

This virus is the human health enemy number one in these tough times. This is our 7th weekly update about COVID-19. We hope that, by sharing information, our partners may have a clear view of what is happening here at the origin that affects our lives and the coffee chain in Brazil. We really appreciate to hear your questions about our coffee market and the news from your countries.

 

Let’s keep believing and investing in the coffee culture so we can keep moving coffee forward!

 

Stay well!

Atlantica Coffee team

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