NYSE and BRL/USD
Arabica futures market has been in an uptrend for three consecutive weeks. The fall of the dollar helped boost agricultural commodity prices, which added to the concern about the Brazilian crop, led KCK1 to surpass 140 USC/lb. The Real gained surprising strength this week.
May/21: Min: 131.10 | Max: 140.20 | Last: 134.90 USC/lb
BRL/USD: Min: 5.4229| Max: 5.6216 | Last: 5.4960
*Data as of the completion of this report
WEATHER
On Monday, Somar Meteorologia informed that in the previous week it rained only 36% of the historical average in the Brazilian coffee growing regions. The forecast for this weekend is the absence of rain, which should return to the Zona da Mata region on Monday. There are no forecasts of intense cold for the next two weeks.
DOMESTIC MARKET and FOB
A shorter week for negotiations in Brazil due to the national holiday. Few deals happened both in the domestic market and for FOB sales.
CROP 21/22
The harvesting intensifies as the days go by in some cities in the Zona da Mata, favored by the absence of rain. In the other regions, coffee growers are preparing for the harvest that should begin in May or June, while the maturation process of the fruits occurs with good uniformity.
BRAZIL AT THE CLIMATE SUMMIT
Investors followed the Brazilian president’s speech at the Leaders’ Summit on Climate, in which Bolsonaro pledged to zero illegal deforestation by 2030 and zero GHG emissions by 2050. He also highlighted the importance of moving forward with the carbon credit market and financially motivating those who provide environmental services in Brazil.
After the summit, the Minister of the Environment announced in an interview that he will double the budget to combat illegal deforestation in the Amazon.
COVID-19 IN BRAZIL
Despite the decrease in cases and deaths in Brazil in the last 30 days, Brazil now represents 10% of the cases and deaths caused by Covid in the world.
People who received the first dose: + 28 mi (+13% of the population)
Fully vaccinated people: + 11.3 million (5.35% of the population)
Cases: + 14 mi
Deaths: + 384 K
Let’s keep believing and investing in the coffee culture!
Take care,
Atlantica Coffee Team