Siga e ouça no spotify! Novos episódios em português aos sábados pela manhã.
KCNY and Currency
Over the week, NY has regained levels above usc 240 lb/p, finishing the previous week with data of decreasing production in Colombia in 2021, as well as the stocks certified on ICE. The Real increased in value due to an increasing inflow of capital into Brazil.
- ICE and London certified stocks remained going down for the week;
- Cecafe released the volume of coffee exports in 2021, amounting to 40.372 million bags of 60 kg, a number that represents a 9.7% drop in volume compared to 2020;
- The volume of 40.372 million bags represents the third best performance of Brazilian coffee exports in history, despite price increases, low liquidity in the second semester of the year, and logistical challenges;
- Also according to the Cecafe’s report, in 2021 Brazil exported about 32% less coffee in volume to Turkey than in 2020. Since Turkey is one of the main destinations of Rio Minas, this data can exemplify the difficulty of liquidity of this standart during the second half of the year;
- Conab released the first survey for the Brazilian coffee crop for 2022, the production expectation is estimated at 55.74 million 60kg bags;
- According to Abic, in 2021, at least 23 brands of coffee frauded the allowed limit of impurities, using rye, barley, chicory and corn in their product. According to the norm of the Ministry of Agriculture, the green coffee used by the industry can have a maximum of 1% of impurities;
March/22: Min: 237,75 | Max: 245,00 | Last: 239,65
BRL/USD: Min: 5,3829| Max: 5,5817| Last: 5,4640
*Data as of the completion of this report
WEATHER
The next week begins with the presence of a warm air mass in all coffee regions. The heat combined with high humidity could organize isolated showers in some regions. A new cold front arrives in the Southeast region on January 21st and could bring moderate rains in some regions between the end of this month and the beginning of February.
Rain forecast for next week:
- Sul de Minas region: rain forecast between 10 and 20 mm;
- Zona da Mata region: rain forecast between 5 and 10 mm;
- Cerrado region: between 10 and 20 mm;
- Garça region: between 10 and 20 mm;
- Alta Mogiana region: between 10 and 20 mm.
DOMESTIC MARKET and FOB
Domestic market continues with low liquidity. Business reported for strictly soft coffee with 25% of low grades at R$ 1.510,00 and Rio Minas with 20% of low grades at R$ 1.435,00. Business is more recurrent among local traders with few sales from the producer.
- Strictly soft good cup running screen: seller close to R$ 1.480,00
- Strictly soft fine cup running screen: seller between R$ 1.540,00 and R$ 1.550,00;
- Rio Minas: around R$ 1.435,00 the running screen with 30% low grades;
- 600 defects near R$1.380 with little interest from the local industry.
For the FOB export, it was a week with few businesses. Still little appetite for new business by the industry.
LOGISTICS
The logistics scenario is still with lack of containers, difficulties in removing equipment and high prices for the sea freight.
COVID-19 IN BRAZIL
On Wednesday (19) Brazil registered 205,310 new cases of Covid-19 in 24h. Compared to the average of 14 days ago, the variation was +487%, indicating a sharp rise in cases of the disease.
The collapse in laboratories is still a reality. According to experts, the lack of tests is the result of two factors: the exponential increase in demand and the concentration of the production of the supplies in a few countries.
People who received the first dose: 162.418.676 (78,8% of the population)
People fully vaccinated: 142.754.119 (69,5 % of the population)
Cases: + 23.420.861 million
Deaths: 621.927
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