Siga e ouça no spotify! Novos episódios em português aos sábados pela manhã.
KCNY and dollar
In a scenario of increasing risk and uncertainty in coffee supply and demand, the Arabica coffee traded another week marked by strong appreciation and firm fundamentals.
- The market is very concerned with the flowering period in the main coffee areas of Brazil, added to the crop failure;
- On Wednesday (24) the prices of Arabica contracts March/22 reached 248.20 USC/lb, a 10-year high;
- With the Thanksgiving holiday on Thursday, there was no trading on the NY exchange, making the business week shorter;
- With the strong highs, some suppliers are not meeting future delivery agreements in Brazil. There are reports that a similar movement is also taking place in Ethiopia;
- A new variant coronavirus in South Africa caused markets to sink Friday on concern that the strain will affect the global economic recovery;
- Coffee traded down Friday, settling at 242.95 USC/lb, a weekly gain of more than 950 points.
March/22: Min: 228.10 | Max: 248.20 | Last: 241.50
BRL/USD: Min: 5.549| Max: 5.662| Last: 5.5890
*Data as of the completion of this report
WEATHER
The accumulated rainfall in the month of November should be below average in all coffee regions. Despite the great sequence of cold fronts that arrived in the Southeast region during the period, in most days the rains occurred in the form of isolated showers. Rainfall accumulated in November by region:
Sul de Minas: 50 – 100 mm;
Zona da Mata: 100 -150 mm;
Cerrado: 70 – 130 mm;
Garça: 50 – 70 mm;
Alta Mogiana: 50 – 80 mm;
Weather forecast for the next 7 days: The cold front that arrived today in the Southeast region should organize rains in the next days in all coffee regions. The weather models show that the rains should be significant in the regions until December 15th.
DOMESTIC MARKET and FOB
A week of little business in the domestic market. The prices of buyer and seller are very far apart, about 50 to 60 reais per bag, making business difficult. In addition, doubts about the 2022 production, increases in input costs and other factors have kept producers retracted;
- We have been receiving daily good volumes of samples of fine cups and good cups (group 1) batches, however, offers from Rio Minas are indeed rarer in this crop;
- Bica good cup coffee: R$ 1450 seller’s bid, but domestic buyer’s bid at R$ 1380-1400;
- Café bica fino: R$1500 seller’s bid, but domestic buyer’s at R$ 1450;
- Rio Minas ready: R$1450 for screen14/16 and R$1420-1430 for screen 17/18 in the domestic market;
- FOB export: very slow market, apparently with more open differentials and some demand for certified coffee. Even for Rio Minas, which has shown higher demand in the last few weeks, there was low demand in recent days.
LOGISTICS
Global shipping is still in crisis, with delays that impact the entire chain, affecting not only coffee exports, but the entire marketing, storage, and transportation of green coffee in Brazil and worldwide.
- There is a great shortage of containers and space on ships for the transportation of goods in Brazil, including large shipowners such as MSC, Hapag, Hamburg Sud, Maersk, and SeaLand;
- With excess demand and limited supply of vessels and equipment to transport the goods, shipping prices remain high;
- New bookings on vessels are very restricted, with availability only for late December and early January, alerting customers to the need to conclude freight negotiations for 2022 as soon as possible;
- There is great difficulty in transfers due to lack of equipment, window in the port terminal for storage or loss of cut off;
- In general, coffee warehouses are full. The warehouses Leste de Minas Varginha and Atlantica Caparaó are practically at a standstill in terms of incoming purchases of coffee, because with the lack of containers, there is little outflow of stored coffee destined for export, in addition to programming delays.It is necessary that the prepared batches are exported to make room for the entry of new purchases. The warehouses have also faced great difficulty in the loading window, heavily impacted by last minute cancellations due to the daily cargo roll over;
- In the same sense, the flow and availability of trucks depends on the arrival of ships, container availability and cargo roll-overs.
Importers, please anticipate URGENTLY all shipping instructions of the contracts to be shipped!
COVID-19 IN BRAZIL
People who received the first dose: 158,447,349 (74.28% of the population)
People fully vaccinated: 131,649,449 (61.72% of the population)
Cases: +22 million
Deaths: 613,416 thousand
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”), atlanticacoffees (plural) and atlantlcacoffee (using the lowercase of L instead of the letter i) and for the 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