Ordem Mínima
+55 31 98258-7114 Av. Princesa do Sul, 1885 | B. Rezende, Varginha, MG, Brazil | ZC: 37062-447
Brazilian Language
  1. Home
  2. /
  3. Market report
  4. /
  5. Weekly report – Brazilian...
  1. Home
  2. /
  3. Market report
  4. /
  5. Weekly report – Brazilian...
  1. Home
  2. /
  3. Market report
  4. /
  5. Weekly report – Brazilian...

Weekly report – Brazilian Coffee Market – Nov 08-12, 2021

by Nov 12, 2021Market report0 comments

Siga e ouça no spotify! Novos episódios em português aos sábados pela manhã.


KCNY and dollar
During the week, technical factors and solid fundamentals supported the significant appreciation of Arabica contracts. The March/22 contracts reached a high of 223.85 USC/lb for the week, marked by concerns over the crops of the world’s main producers, the continuous drop in ICE-certified stocks, logistical problems, technical movements with high global inflation, and the appreciation of the Brazilian real against the dollar.

  • Friday’s trading session was very volatile due to the expiration of Z1 options;
  • The fundamentals are solid with the tightening of supply in the main producers, to mention: the return of La Nina in the coming months with impacts in South America, the concern with the setting of fruit set/pinhead stage and weather in Brazil; the falls in exports from Vietnam; the excess of rain in Colombia, which affected productivity and may lead to the emergence of diseases in coffee trees and the civil war in Ethiopia;
  • ICE certified stocks fell again, now to 1.798 million bags, continuing the sequence of continuous drops;
  • The Brazilian real gained strength against the dollar this week, trading around 5.40, with the market more optimistic about the approval of the PEC of precatories. In general terms, the proposal postpones the payment of precatories (government debts already recognized by the courts) and changes the calculation of the spending cap, a way to “circumvent” the spending cap to make some projects of the Bolsonaro government workable;
  • The strong increase in the prices of production factors worries farmers. Besides fertilizers, fuel, and inflation that reflects in all products, the prices of herbicides should also increase;
  • Monday (15th) is a national holiday in Brazil, when domestic markets will remain closed, with a return on Tuesday.

March/22: Min: 201.45 | Max: 223.85 | Last: 222.35
BRL/USD: Min: 5.3890| Max: 5.5969 | Last: 5.4388
*Data as of the completion of this report


WEATHER

The month of November has shown heavy rains in the coffee areas of Minas Gerais, especially in the Zona da Mata. See below the accumulated rainfall of the month so far:

  • South of Minas region: 20 to 50 mm.
  • Zona da Mata region: 100 mm in all municipalities;
  • Cerrado region: 15 to 35 mm;
  • Alta Mogiana and Garça region: No significant rainfall was observed in the region;
  • Weather forecast for the coming days: The rains begin to lose strength on Friday, cloudy weather without rain on Saturday, with a forecast truce from Sunday (14).
  • With La Nina, the forecast is for few rains in the Southeast of Brazil, as isolated showers, between December and February.

CROP

Cerrado: This week, our field team visited the Cerrado, with field evaluations in 11 towns in the region. Many crops are vigorous, with a satisfactory number of buds per rosette. However, there are crops that have been affected by drought and crops with little or no lead attachment associated with phoma, problems that compromise part of the productive potential of the region.


DOMESTIC MARKET and FOB

Domestic market with little liquidity, with the price bases of buyers and sellers distant. Domestic sellers continue to hold firm on prices, even with record prices;

  • Dura/good cup bica: buyer at R$1,220 to 1,260 and fine R$1,280 to 1,300, but very short supply at the counter, with little avidity from sellers;
  • Rio Minas: Bica corrida: R$1.160 to 1.200 Bica corrida with the market variations, but very rare supply; #17/18: R$1.270 to 1.280 (Buyer) and R$1320 to 1330 (Seller) and #15/16: R$1.240 to 1.260 (Buyer) and R$1.290 to 1.300 (Seller);
  • For the FOB export, it was a week of moderate demands and greater avidity for Rio Minas. We have observed that international buyers are very focused on finding solutions or alternatives for the delayed shipments, which have been accumulating since August this year.

LOGISTICS

The truck drivers’ strike at the port of Santos ended on Monday after a week of stoppages. During the period, there were no coffee shipments through the port, generating a large accumulation of cargo to be disposed of, while the critical restrictions of space in container ships for all international destinations continue, daily rollovers and lack of containers;

  • New vessel bookings, when obtained, are for shipment only in mid/late December;
  • For the United States and Europe we have received booking with departure on Jan-22.
  • Importers, please anticipate URGENTLY all shipping instructions of contracts to be shipped until December/21!

COVID-19 IN BRAZIL

13 Brazilian states and the Federal District are down, 9 are stable and 4 are up.

  • People who received the first dose: 156.6 mi (73.43% of the population)
  • People fully vaccinated: 123.4 mi (57.85% of the population)
  • Cases: + 21.92 million
  • Deaths: 610,323

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”) and atlanticacoffees (plural) and 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