KCNY and Currency
Coffee prices on the New York Stock Exchange worked between 182.20 and 192.55 cents per pound for the March/24 expiration date, with a fluctuation of 1035 points over the week, demonstrating the high volatility of the coffee market. The market continues to keep an eye on the weather in coffee producing regions and its impact on the 24/25 crop. In foreign exchange, the dollar worked between R$4.8606 and R$4.9405. US data was released and showed the creation of 164,000 new job vacancies in December, against the projection of 130,000 vacancies.
On Friday (29), the Commodity Futures Trading Commission (CFTC) released a report on the positioning of traders in the New York coffee market for the week ended Tuesday (26). For the first time in eight weeks, investment funds reduced their long position to 22,138 lots.
Certified stocks of coffee on NY ICE closed Thursday (04) at 253,144 60 kg bags. There are currently 12,616 bags pending approval.
MARCH/24: Min: 182.20 | Max: 192.55 | Last: 182.70
BRL/USD: Min: 4.8606 | Max: 4.9405 | Last: 4.8776
*Data up to the finalization of this report
WEATHER
The first week of January was rainy in practically all coffee-growing regions, except for the Garça region, where the rains were isolated and of low intensity.
The cold front that has remained stationary in the Southeast of Brazil is expected to move towards Bahia state at the end of the week, and moderate to heavy rain is forecast for the northern regions of Espírito Santo and southern Bahia. In the other coffee-growing regions, the weather forecast is for isolated, light rain.
Rain forecast for the week:
South Minas region: between 40 and 50 mm.
Zona da Mata region: between 40 and 50 mm.
Cerrado region: between 40 and 50 mm.
Alta Mogiana region: between 20 and 30 mm.
Garça region: between 20 and 30 mm.
DOMESTIC MARKET and FOB
After the slow pace of trading in the last few weeks of 2023, the domestic market saw a slightly higher number of trades this week, in line with movements on the NY ICE and the dollar, as well as buyers’ needs. On the FOB, occasional trades continue to take place and buyers of fixed-price coffees took advantage of the fall in prices in New York.
The requests from sellers in the domestic were as below:
Strictly soft good cup running screen: seller close to R$ 980.00
Strictly soft fine cup running screen: seller close to R$ 1,020.00
Rio Minas: Running screen with 25% low grades close to R$ 820.00
600 defects: close to R$ 800.00
LOGISTICS
- The first concrete pour of the superstructure for the Port of Rio de Janeiro expansion project was recently completed by Carioca Engenharia. An innovative approach was adopted, using mobile metal panel forms manufactured on site. The information was obtained from the Portos e Navios portal.
- The Santos Port Authority (APS) has begun studies to deepen the navigation channel of the Port of Santos to 17 meters, in partnership with the State University of Campinas (Unicamp). The contract, which includes specific clauses for this purpose, was formalized and had its extract published in the Federal Official Gazette this Thursday (4). Information on this development was published by the Portos e Navios news portal.
Atlantica Coffee Team
Disclaimer:
This analysis report aims only to provide information about the coffee market, based on internal and public sources, valid at the time of its dissemination. It does not aim to guide recipients in making any decisions, which are therefore solely the responsibility of the recipient. Atlantica Coffee is exempt from any liability arising from direct or indirect losses.