KCNY and Currency
- The coffee market remains volatile. Over the week there was a high of 221.40 c/lb and a low of 204.20 c/lb for the KCU2 contract.
- NY certificate stocks continue the downward movement closing Thursday with 700,050 bags and no pending certificates.
- Part of the market’s oscillation was due to the decision of the American central bank to increase the basic interest rate by 0.75%, which was already expected by the market, and is now in the band of 2.25% – 2.50%.
- The FED’s decision and the speeches of its president after the decision, along with the second quarter GDP data, has brought some tranquility to the market, since the chances of highs (like last Wednesday’s or higher) has become smaller, for the time being.
- In the local scenario we had the release of inflation data that showed a slight deceleration. As a result, the Real oscillated this week between a maximum of R$ 5.4785 and a minimum of R$ 5.1460, remaining on Friday close to the minimum observed.
SEPTEMBER/22: Min: 204,20 | Max: 221,40 | Last: 217,10
BRL/USD: Min: 5,1460 | Máx: 5,4785 | Last: 5,1900
*Data as of the completion of this report
WEATHER
In July, three cold fronts passed along the coast of the brazilian Southeast region, however, due to the atmospheric blockage caused by the Continental Tropical Air Mass, the frontal systems did not cause rain in the coffee regions. Historically, in Brazil, it is common to have no rainfall during this time of year.
The first week of August will also be marked by the lack of rain. The polar air mass that passes along the coast of the Southeast region should cause a sharp drop in temperatures in the South of Brazil.
No rain is forecasted for the week.
DOMESTIC MARKET and FOB
The week was marked by quotations without BID. The market is being monitored in the hope of a price reduction with the pressure of the harvest that slowly arrives in the domestic market. The NY oscillation makes it difficult to close new deals.
Strictly soft good cup running screen: seller close to R$1.280,00;
Strictly soft fine cup running screen: seller close to R$ 1.350,00;
Rio Minas:
17/18: R$ 1.170,00
14/16: R$ 1.140,00
Running screen with 30% low grades: close to R$ 1.240,00;
600 defects: close to R$ 1.220,00
LOGISTICS
Most carriers have once again shown low equipment stocks, with Hamburg Sud, Sealand, and Maersk being the most notable ones.
Bookings requested for the ports of New York and Hamburg, for departure in August and early September, are already being declined due to lack of space on the ships.
We would like to emphasize the importance of sending shipping instructions in advance in order to avoid delays.
COVID-19 IN BRAZIL
People who received the first dose: +179.796.736 (89.83% of the population able to take the vaccine)
Fully vaccinated people: +168.955.056 (84,41% of the population able to take the vaccine)
Cases: + 33.752.376 million
Deaths: 678.147 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