Weekly Report – Brazilian Coffee market – Nov 16-20, 2020 | Atlantica
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Weekly Report – Brazilian Coffee market – Nov 16-20, 2020

by Nov 20, 2020Market report0 comments

KCNY and BRL/USD
This week were recorded highs in KCNY and H1 oscillated between 112.80 and 124.40. The real continues to recover against the dollar and operated between a minimum of 5,2735 and a maximum of 5,4581. This Friday, the currency closed at 5,3880.

INTERNATIONAL LOGISTICS IN BRAZIL
The lack of space and containers with the shipowners continue to be great challenges for the logistics team in shipments. The difficulty in removing containers has been even greater for food grade in DEPOT with the CMA CGM, since it is lacking units and difficulties in authorization to survey the units at the time of collection.

WEATHER
This week’s rains were well distributed in the main producing regions, however the water deficit that has reached most crops in recent months may negatively impact the productivity of the 21/22 harvest. Since March this year, rainfall has been well below historical averages and very high temperatures, which have affected plants, especially new crops with productive potential for the next harvest.

There is rain forecast for the main producing regions between 50 and 90mm until Monday.

DOMESTIC MARKET AND FOB
The producers, with much of the production already sold and well capitalized, are not eager to sell the outstanding batches. Many are waiting for the development of the flowering that have occurred to estimate more accurately the supply of the 21/22 crop and plan their marketing.

The highs in the stock market favored more competitive differentials for the 20/21 harvest that heated up the demand and sales for export this week.

COVID-19
Scientists and health authorities point out that the second wave of Covid-19 in Brazil may already have arrived. There is a strong upward trend in deaths from the disease, 644 deaths were registered in the last 24 hours (variation of +54% compared to the average of 14 days ago), totaling more than 68k deaths and 5.98M of cases since the beginning of the pandemic. There are no lockdowns in the country.

The first 120,000 doses of Coronavac Chinese vaccine arrived in Brazil last Thursday morning under strong security scheme. Despite the good news, the Chinese vaccine in Brazil has extrapolated the health field and is the center of political-ideological disputes. The vaccine is in the third and last phase of tests and there is expectation for the conclusive study for approval by Anvisa until December 2020, when the rest of the 6 million doses lot will arrive in Brazilian soil.

In the world, the second wave of the disease generates concerns about the demand for coffee with the new lockdowns and restrictive measures.

Lets keep believing and investing in the culture of coffee so together we can keep moving coffee forward!

Stay well,
Atlantica Coffee Team

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