Weekly Report – Brazilian Coffee market – Oct 26-30, 2020 | Atlantica
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Weekly Report – Brazilian Coffee market – Oct 26-30, 2020

by Oct 30, 2020Market report0 comments

KCNY and BRL / USD
KCZ0 fluctuated between 102.95 and 108.20, a week marked by technical low. BRL / USD traded between a low of 5.6086 and a high of 5.7920, numbers closely related to macroeconomics.

The new Covid-19 outbreak in the world worries the market regarding the consumption of coffee away from home and the recovery of economies and continues to follow-up closely the evolution of rainfall in Brazil. The market’s nervousness about the upcoming elections in the US and investors’ search for security supported new dollar’s highs. An intervention by the Brazilian Central Bank with a $ 787 million auction in the spot currency helped to correct the real’s drops. Copom maintained the SELIC rate at 2%, the lowest basic interest rate in Brazilian history.

COVID-19
Covid-19 cases in Brazil show a trend of stability in deaths from the disease, with a moving average in the last 7 days of 439 deaths (-13%). Altogether there are 5.49 million registered cases, more than 159 thousand lives lost and 4.95 million patients recovered since the beginning of the pandemic in the country. Brazil is in 4th place in the world ranking of more deaths per million inhabitants (751 deaths per million).

INTERNATIONAL LOGISTICS IN BRAZIL
The reduction in imports during the pandemic and the rise in the dollar continue to impact international export logistics in Brazilian ports. The lack of containers and great difficulty in space on ships for most routes and shipowners are worsening and should be extended to the coming months.

An important strategy to mitigate part of these difficulties has been to act in advance in bookings, an action in which the help of customers in the forwarding of Shipping Instructions is essential and that they certify with the shipowner when closing the freight contract if there are guaranteed units .

DOMESTIC AND FOB MARKET
Market a little more active than in previous weeks, but still little business. Coffee growers are well capitalized and remain unwilling to sell coffee at current levels. The difficulty of space in the warehouses remains a bottleneck for new businesses.

WEATHER
Last weekend there were good volumes of rain in the main producing regions. Despite still falling short of the ideal to supply the needs of the plant, soil and flowering set, the rains brought more optimism regarding the next harvest and the setting of the flowering. Rain is forecast for this Friday and all weekend in the main producing regions.

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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