NYICE and Dollar
With the Carnival holiday and the closure of NYICE on Monday and B3 until Wednesday, this was a short week for coffee business in Brazil, with only two working days. At the reopening of NY on Tuesday, the Arabica futures market opened valued and recorded significant increases throughout the week, reaching close to 130 USC/lb.
The flow of investments into commodities such as coffee, the heated demand with the advance of vaccinations around the world and the 12% drop in US GCA stocks released on Tuesday, have supported prices. New highs in NY certified stocks helped to hold prices down.
March/21: Min: 128.75 | Max: 129.85 | Last: 127.50 USC/lb
BRL/USD: 5.3680 | Max: 5.4701 | Last: 5.3900
*Data as of the completion of this report.
LOGISTICS
The logistics scenario continues to be challenging as in previous weeks: low stocks of food-grade containers, space restriction for some destinations, such as the United States and European countries, frequent omission of vessels and bookings rollovers.
DOMESTIC MARKET and FOB EXPORTS
With the long break for the holiday and the rains in the producing regions, few businesses happened in the domestic market. When activities resumed on Thursday, coffee was quoted at R$650-700/bag internally. The producer remains cautious, retracted in the offers, believing in more significant increases and worried about the production costs of the next crop, given inflation, the variation of the dollar and the consequent increase in prices of inputs such as fertilizers, labor, electricity and fuel.
WEATHER
In the last few days, heavy rains have been recorded in the main coffee growing regions of Minas Gerais and Espirito Santo, which should continue for the next 7 days, possibly receiving over 250 mm in some areas of these states.
COVID-19 IN BRAZIL
Vaccinated since Jan 17: + 5.5 million
Percent of the population vaccinated: 2.6 %
Cases: + 10 mi
Deaths: + 243 K
Recovered: + 8.96 mi
Let’s keep believing and investing in the coffee culture!
Stay well,
Atlantica Coffee Team