KCNY and BRL / USD
Up to the release of this report, during the week, KCH1 oscillated between 108.05 and 113.50 and the BRL / USD was traded between 5.2229 and 5.5259. Markets responded positively to Biden’s election plus the confirmation of the efficiency of Pfizer’s vaccine. On the other hand, the second wave of COVID-19 around the world is not showing improvements, lock-downs bringing concerns to the economies and America is defining new restrictions measures due to the high increase on cases and hospitalization needs.
COVID-19
Up to today, Covid-19 cases in Brazil reached a total of 5.781.582 with 164.281 deaths. Regarding the vaccine, political disagreements arisen as ANVISA suspended Butantan’s test for the CoronaVac temporarily. Local elections for city councilor and mayor are in their final stretch.
INTERNATIONAL LOGISTICS IN BRAZIL
The local warehouses are still very busy with receiving, storing and processing coffee. In addition, international logistics are still with tight schedules and low availability causing delays on the shipments. We reinforce that an important strategy to mitigate part of these difficulties is to act in advance. Even with all logistics issues and complications Brazil exported 4,1 million bags of coffee reaching an historical record for the month of October, according to Cecafe.
DOMESTIC AND FOB MARKET
Domestic market was active during the week, good volumes of businesses reported. On the short term only a few business here and there. The main volumes negotiated were for the crop 22/23. For the crop 21/22, only a few business took place as a reflection of the volume of coffee already traded, plus the off-cycle and concerns of the impacts of the period of drought faced in some regions of Brazil plus the high temperatures that followed the lack of rains. Local industry reported only a few business. On the FOB basis good demands for the crop 20/21 for shipments starting from January, some nice business reported.
Lets keep believing and investing in the culture of coffee so together we can keep moving coffee forward!
Stay well,
Atlantica Coffee Team