KCNY and Currency
The world continues to monitor the Russian invasion. The geopolitical tensions have reduced investors’ interest in risk and many of them have remade their positions, seeking, in some cases, immediate liquidity and, in others, to boost gains in commodities that are paying better in the short term.
• The coffee market had an abrupt drop during the week;
• The minister of agriculture Tereza Cristina says that food prices will increase in Brazil after the Ukraine-Russia conflict, as a consequence of the increase in production costs;
• Certified stocks in NY “ICE” closed on Thursday 1,003,338 bags of 60 kg;
• On Monday, February 28, the Montesanto Tavares Group released a report forecasting the 22/23 coffee crop, totaling approximately 60.7 million 60kg bags, of which 39.3 of Arabica and 21.3 of Conilon;
May/22: Min: 220,75 | Max: 239,15 | Last: 220,50
BRL/USD: Min: 5,0205 | Max: 5,2168 | Last: 5,0660
*Data as of the completion of this report
WEATHER
The month of February was rainy in the coffee growing regions of Minas Gerais. The data show that it rained 2.9 times more than the average for Zona da Mata and 2.3 times more than the average in Cerrado.
All this rainfall occurred between February 1st and 20th, and was caused by the presence of 3 cold fronts. As the cold fronts were stationary between Minas and São Paulo, the volume of rainfall observed in the Garça region was below average.
Rain forecast for next week:
- Sul de Minas region: between 40 and 60 mm;
- Zona da Mata region: between 10 and 15 mm;
- Cerrado region: between 10 and 15 mm;
- Garça region: between 50 and 60 mm;
- Alta Mogiana region: between 10 and 15 mm.
DOMESTIC MARKET and FOB
Short week due to the Carnival holiday and aggravated by the abrupt drop in the ne NY “ICE” market, which discouraged sellers in the domestic market and made buyers drastically reformulate their purchase bases. There were few demands and little business in the FOB.
LOGISTICS
Due to the Carnival holiday recess, we had a shorter week. Only a few booking confirmations have been received, some with dates in April only.
For Russia or Ukraine, new bookings have been suspended without any informed forecast. Ongoing shipments, initially destined for Ukraine, will be directed to other ports, as indicated by the receiver, or to nearby ports, but to neighboring countries, at the shipping company’s discretion. Hamburg Sud has communicated that the release of equipment for bookings bound for Russia is temporarily suspended.
COVID-19 IN BRAZIL
People who received the first dose: +172.805.354 (80,44% of the population)
People fully vaccinated: +155.318.292 (72,3% of the population)
Cases: + 28.906.214 million
Deaths: 650.646
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