Weekly report – Brazilian Coffee Market – Feb 07 ~ 11, 2022

KCNY and Currency

Over the week, NY “ICE” prices hit new heights and maintained the reversal of the spread. Certified stocks on ICE continue to fall, reaching the lowest numbers in 20 years. The concerns about the availability of coffee still guide the market quotations.

The Real continues to strengthen mainly due to the flow of foreign investment. According to data from the central bank in the past week, there was a net inflow of usd 4.9 billion in Brazil.

• The NY “ICE” certified stocks remained in daily decline throughout the week, closing, until this past Thursday, with volume close to 1,035,000 60 kg bags;

• The International Coffee Organization has cut in half the coffee surplus for the 2020/21 season to 1.2 million 60kg bags;

• The first woman elected a director of the International Coffee Organization, was the Brazilian Vanúsia Nogueira;

• European traders shipped a significant volume of robusta coffee from Vietnam and Indonesia for delivery on the stock exchange;

• In January 2022, Brazil exported about 3.2 million 60kg bags, a volume about 12% lower than the same period in 2021;

• According to Safras e Mercados, about 86% of the volume produced in the 21/22 harvest has already been commercialized;

March/22: Min: 240,10 | Max: 260,45 | Last: 251,60
BRL/USD: Min: 5,1758 | Max: 5,3222| Last: 5,1960
*Data as of the completion of this report

WEATHER

The two cold fronts, which remained stationary in the Southeast region, brought rain to all coffee-growing regions during the first two weeks of February.

It can be seen in the rainfall data of this first half of the month that it is already above the historical average for the month in the Cerrado region. The rains came in volume and constancy, with a sequence of rainy days and not just isolated showers

Rain forecast for next week:

• Sul de Minas region: between 130 and 150 mm;
• Zona da Mata region: between 30 and 50 mm;
• Cerrado region: between 100 and 120 mm;
• Garça region: between 30 and 40 mm;
• Alta Mogiana region: between 40 and 80 mm.

DOMESTIC MARKET and FOB

Domestic market heated up with the NY “ICE” moves over the week. For rio minas, some lots were offered, but no deals were reported except for rio graúdo at R$1,510.00.

• Strictly soft good cup running screen: seller close to R$ 1.500,00;
• Strictly soft fine cup running screen: seller close to R$ 1.550,00;
• Rio Minas 17/18: R$ 1.500,00. Running screen with 30% low grades near to R$ 1.400,00;
• 600 defects: near R$1.400,00.

LOGISTICS

We can see improvements in the logistics scenario in the operationalization of shipments, in the withdrawal of equipment, in the improvement of space availability for some routes, in the reservation confirmation, and in the lower instability of prices.

COVID-19 IN BRAZIL

People who received the first dose: +168.105.159 (78,25% of the population)
People fully vaccinated: +152.012.601 (70,11 % of the population)
Cases: + 27.125.512 million
Deaths:  636.111

Let’s continue believing and investing in the coffee culture!
Atlantica Coffee Team

FRAUD ALERT

Fraudsters have created accounts at the domains atlanticacoffeee.com (with 3 letters “e”), atlanticacoffees (plural) and atlantlcacoffee (using the lowercase of L instead of the letter i) and for the prefixes using the names of our employees, even imitating our signatures. They are quoting coffee, issuing invoices with altered payment data, mostly to banks in Hong Kong, which we are not ours! Please be aware of the sender of the messages and always question instructions to change bank details!

Our only official e-mail domain is: atlanticacoffee.com