NY Stock Exchange and BRL/USD
In a week marked by drops in Arabica prices, the market followed with fear the pace of vaccinations around the world, the evolution of the Covid, and intensification of restrictions in major coffee consuming countries such as the US, Germany, and France.
On March 30, the major highlight of the ICE stocks report was Arabica from Brazil, which became for the first time the main source of ICE certified stocks, with 871,604 bags (representing 47.5% of the total), exceeding the 772,166 bags from Honduras (42.15%).
Domestically, important changes in the political and fiscal scenario moved the exchange rate. President Bolsonaro announced the exchange of 6 ministers, including the command of the Ministry of Defense. The commanders of the Army, Navy, and Air Force were also replaced. The Ministry of Economy announced that over 400,000 formal job openings were created in Brazil, surprising the market positively, after all, it is the best result for the month in 30 years.
May/21: Min: 120.50 | Max: 128.40 | Last: 121.80 USC/lb
BRL/USD: Min: 5.6069| Max: 5.8063 | Last: 5.7031
*Data as of the completion of this report.
EASTER HOLIDAYS
The NY exchange will be closed for the Good Friday holiday on April 2, 2021 (Friday), when our activities are suspended. Normal work will resume on Monday, April 5, 2021.
LOGISTICS
There is an acute shortage of food-grade containers with major carriers such as Maersk, Evergreen, CMA CGM, Hapag Lloyd, and MSC. We have seen a significant increase in vessel omissions and cargo rolling.
DOMESTIC MARKET / FOB
In Brazil, the domestic market had a week of devaluation in the main market squares of the country. Most sellers, well-capitalized, remain firm in their bases and in no hurry to sell. In some warmer and lower-lying cities, the start of harvesting should begin in the second half of this month. In other regions, in general, the fruits are still green.
CLIMATE
With the breaking of the atmospheric blockade and the advance of a cold front on the Brazilian coast, the rain returned to the regions of the Zona da Mata, Espírito Santo, and the south of Bahia, with an accumulation of 5 days between 30 to 50 mm. The condition should remain until Monday. In other coffee regions, the forecast is for little rain, below 20 mm. For the next week, 15 to 30 mm is estimated in most coffee regions.
COVID-19 IN BRAZIL
During the month of March the worst numbers of deaths and cases were registered in Brazil, raising caution among investors. On Wednesday (31), 3,950 lives were lost to the disease, the worst mark ever recorded. The state of Minas Gerais extended the “Purple Wave” to April 11. Yesterday (31), Anvisa approved the use of Janssen’s single dose vaccine. The country should receive in the second semester the 38 million already acquired.
People who received at least one dose: + 17,620 mi (8.32% of the population)
Fully vaccinated people: + 5.09 mi (2.4% of the population)
Cases: + 12.7 mi
Deaths: + 321 K
Happy Easter!
Let’s keep believing and investing in coffee culture!
Take care,
Atlantica Coffee Team