Siga e ouça no spotify! Novos episódios em português aos sábados pela manhã.
KCNY and Currency
A week of a lot of volatility in the exchange rate with the Brazilian Real strengthening. NY “ICE” also remained unstable.
- During the week, the IPCA (National Wide Consumer Price Index) was released, one of the indexes that measures inflation in Brazil and calculated by the IBGE. The accumulated value for the year 2021 was 10.06%, the highest measurement since 2015;
- Also according to the IBGE, the price of ground coffee in Brazil had an accumulated increase from March to December 2021 of 50.11%;
- According to the National Federation of Coffee Growers of Colombia, coffee production fell by 9% in 2021, to 12.6 million bags of 60 kg. This fall represents the lowest harvest in the last 7 years;
- From 7 to 13th of January 2022 there was a drop of 94,164 bags of 60 kg in the certified stock of ICE;
March/22: Min: 232,55 | Max: 244,90 | Last: 236,65
BRL/USD: Min: 5,4996| Max: 5,6921| Last: 5,5342
*Data as of the completion of this report
WEATHER
The first half of January 2022 was marked by heavy rains in some regions of Minas Gerais. The volume of rainfall observed between the 1st and 13th was higher than expected for the month in the western, central-western, central and Zona da Mata regions of Minas Gerais. The presence of a cold front, which remained stationary in the state, and the formation of the South Atlantic Convergence Zone were the ingredients for the occurrence of so much rain. Despite all the rain in the Southeast region, it was only in the coffee growing region of the Zona da Mata that above average volumes were observed, which even made it difficult for farmers due to the fall of barriers on the region’s roads.
Rain forecast for next week:
- Sul de Minas region: rain forecast between 20 and 30 mm;
- Zona da Mata region: rain forecast between 5 and 10 mm;
- Cerrado region: between 10 and 20 mm;
- Garça region: between 30 and 50 mm;
- Alta Mogiana region: between 40 and 60 mm.
DOMESTIC MARKET and FOB
Domestic market with low liquidity, there is availability of batches of group 1, however at very high prices, which makes it difficult to trade based on replacement.
Coffee prices on the internal market;
- Strictly soft good cup running screen: seller between R$ 1.520 and R$ 1.550,00;
- Strictly soft fine cup running screen: seller R$ 1.570,00 and R$ 1.600,00;
- Rio Minas: around R$ 1.400,00 the running screen, but the market is short in sellers;
- Rio Minas #17/18 sellers asking around R$ 1.560,00 and 15/16 around R$ 1.520,00;
- 600 defects around R$1.380-R$1.400,00 with very little interest from the local industries.
For FOB exports this was a week with some demands and little business. Partners still report little appetite for new business from the industry, especially on FOB basis. Differential prices vary between different sellers FOB but generally not competitive in the eyes of buyers.
LOGISTICS
The logistics scenario has not changed, it continues as in 2021, with a lack of spaces, difficulties in removing equipment and high prices for sea freight.
COVID-19 IN BRAZIL
COVID cases continue to increase in Brazil and testing labs are full. The health secretary of Minas Gerais said yesterday in an interview that he sees a risk of collapse in essential services in the coming weeks due to increases in cases.
People who received the first dose: 161.836.379 (75,87% of the population)
People fully vaccinated: 141.151.664 (68,04 % of the population)
Cases: + 22.815.827 million
Deaths: 620.609.
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