NYSE and BRL/USD
The sharp changes in Arabica prices repeated themselves this week. In Thursday’s session, KCN1 recorded its highest level in four years, reaching a high of 153.70 USC/lb. The strong macro, the falling dollar, solid fundamentals such as Brazil’s crop, export bottlenecks in Colombia, and heated demand supported prices.
June/21: Min: 143.85 | Max: 153.70 | Last: 149.55 USC/lb
BRL/USD: Min: 5.1950| Max: 5.3323 | Last: 5.3121
*Data as of the completion of this report
DOMESTIC MARKET and FOB
Domestic prices remain firm and mismatched with demand. Around 40-45% of new crop coffee is available, with offers at R$770-780, depending on the region. As for the remaining crop, there are few lots on the market, priced around R$10-15 cheaper than harvest 21/22. FOB demand little heated, with a greater demand for Rio Minas and buyers of group 1 attentive to the direction of the differentials.
WEATHER
The last days were of dry weather and mild temperatures in most producing regions. Rain will return this Saturday to Alta Paulista and Paraná, and will extend to the South of Minas and São Paulo at least until the middle of next week. It is estimated to accumulate between 15mm and 20mm in these regions. The rains could impact the harvest for a few days but are important to replenish soil moisture.
LOGISTICS
Hapag Lloyd informed that from mid-June on, there will be a *booking cancellation fee* for shipments from Brazil (see note). The many vessel delays, changes in schedules, and difficulties in finding food-grade containers to ship coffee with most shipowners persist.
We also face complications with free-time period reductions, a measure that shipowners have adopted to try to solve the container shortage problem. At the port of Santos, the delay of vessels has been greater, as well as the delay in opening the gate, generating congestion for the deposit of cargo in the shipping terminal.
Some shipowners are no longer accepting space reservations on vessels until the end of June. Thus, in order to avoid delays in contracts, we encourage our customers to send the Shipping Instructions for the next months as soon as possible!
COVID-19 IN BRAZIL
People who received the first dose: + 41.1 mi (+19.41% of the population)
People fully vaccinated: + 20.2 million (9.54% of the population)
Cases: + 15.9 mi
Deaths: + 444 K
Let’s keep believing and investing in the coffee culture!
Take care,
Atlantica Coffee Team