KCNY and Currency
The week was intense for the commodities sector due to higher than expected U.S. inflation data, increasing concerns for a possible recession scenario.
- The September/22 contract in NY had a high of 220.00 and a low of 194.60 over the week;
- Certified stocks were down 39,279 bags, closing Thursday 7/14 with 750,702 bags and 0 bags pending certification;
- The coffee harvest is progressing in Brazil, helped by the dry weather, reaching 59% of production, according to the consultancy Safras & Mercados.
- The Real was also driven by the inflation factor, reaching new highs over the week;
SEPTEMBER/22: Min: 194,60 | Max: 220,00 | Last: 199,90
BRL/USD: Min: 5,2997 | Max: 5,4900 | Last: 5,3918
*Data as of the completion of this report
WEATHER
Over the week, the cold front that passed along the coast of the brazilian Southeast region moved quickly to the ocean, as well as the polar air mass that came in the rear of the frontal system.
Therefore, the weather forecast models show that there is no forecast for the arrival of cold fronts or polar air masses in the second half of July. For the next few days the forecast is for sunshine and low relative humidity in all brazilian coffee regions.
No rain is forecasted for the week.
DOMESTIC MARKET and FOB
It was a week of very few movements on the domestic and FOB markets. The low price of NY has pushed away even more the buyers that were not very interested since a few weeks ago. Both in the domestic and foreign markets the buying and selling ideas are not being said, which has brought a stagnation to the market.
LOGISTICS
The Port of Rio de Janeiro is still suffering from some omissions, reducing the frequency of departures. Services to the Americas and Asia have had some difficulty in operating, as a result of congestion and operational restrictions in ports in China and North America.
The ships destined for ports in Europe and the rest of Asia also already have very low availability for departure in July and the first weeks of August, thus requiring an anticipation in the request for reservations.
COVID-19 IN BRAZIL
People who received the first dose: +179.331.700 (89.6% of the population able to take the vaccine)
Fully vaccinated people: +168.037.528 (83.95% of the population able to take the vaccine)
Cases: + 33.140.708 million
Deaths: 674.846 thousand
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