NY STOCK EXCHANGE AND DOLLAR
After a week of significant increases in the Arabica contracts, KCK1 opened Monday with technical highs around 139 USC/lb, but soon retreated after ICO data on global coffee exports of increase by 3.7% p.a. between Oct/20-Jan/21, signaling a more adjusted supply.
During the week, quotations in NY continued to fall, trading again around 130 USC/lb (k1), giving back part of the previous week’s gains. The strong devaluation of the Real against the dollar, which reached close to 5.80, and the new high of ICE stocks in 1.790 million bags, also contributed to the price drops.
March/21: Min: 128.30 | Max: 139.80 | Last: 128.405 USC/lb
BRL/USD: Min: 5.5450 | Max: 5.7725 | Last: 5.6990
*Data until the completion of this report.
LOGISTICS
The omission of vessels and rollovers in bookings have been very frequent. There is also difficulty with the availability of food-grade containers. In order to guarantee equipment and space on board the vessel, we ask importers to send the shipping instructions of their contracts as early as possible.
DOMESTIC MARKET
With the strong devaluation of the Brazilian Real against the US dollar and the NY levels, the month ended February with the highest nominal price in the CEPEA historical series at R$ 746.50/bag (+13.4%) for Arabica type 6 hard cup or better.
On the second day of March, it surpassed the mark, reaching R$ 748.80/bag. Even at very interesting levels, few deals were done. Growers remain cautious in business, betting on more significant increases, higher than R$800/bag.
CROP
The rains this year and the agricultural treatments have favored the coffee plants in the main producing regions of Arabica, which have a good vegetative stage and good fructification. The producer keeps monitoring the development of the crop to plan future sales.
COVID-19 IN BRAZIL
On Wednesday (03), the country broke the sad record of deaths by Covid in single day: 1910 lives lost. 18 states and the Federal District have ICU occupancy rates above 80%. The Ministry of Health has decided to buy all available vaccines from Pfizer and Janssen, and should receive 138 million doses by the end of the year.
Vaccinated since Jan 17: + 7.67 million
Population vaccinated: 3.62 %
Cases: + 10.793 mi
Deaths: + 260.970 K
Recovered: + 9.605 mi
Let’s keep believing and investing in the coffee culture!
Stay well,
Atlantica Coffee Team