KCNY and Currency
The week was not very busy due to the Labor Day holiday in the USA on September 5 and the Brazilian Independence Day on September 7, leaving NY “ICE” and B3 closed on these dates respectively.
- Once again, the week was marked by the lack of interest from international buyers, which has been raising doubts about the world coffee consumption in the face of the high inflation and the lower purchasing power. The decrease in exports from the coffee producing countries also reinforce these questions;
- On the other hand, as reported on Tuesday by Bloomberg, Rabobank has changed its previous projection regarding a surplus in the crop. According to the bank, the crop 22/23 may have a deficit of 1.3 million bags, which projects the deficit mainly in the Arabica variety;
- According to CEPEA (Center for Advanced Studies in Applied Economics), the indicator of coffee type 6, placed in São Paulo, closed at R$ 1,344.20 a bag of 60 kg on August 31, an increase of 3.3% compared to the last working day of July. The recent increases in coffee prices reflect the concerns about the lack of rainfall after the early blooming of the 2023/24 harvest;
- According to data released by the IBGE (Brazilian Institute of Geography and Statistics), the Brazilian coffee production is expected to increase by 9.6% in 2022, if compared to the institute’s figures for 21/22, to 53.7 million 60kg bags;
- The NY “ICE” certified stock closed Thursday at 624,470 60-kg bags;
DECEMBER/22: Min: 220,65 | Max: 231,55 | Last: 225,35
BRL/USD: Min: 5,1509 | Max: 5,2526 | Last: 5,1830
*Data as of the completion of this report
WEATHER
In the last few days, the cold front that passed along the coast of the Brazilian Southeast region has only organized cloudiness in the continent, with no occurrence of rains.
The continental air mass is again predominant in all states of the Southeast region of Brazil, making the formation of rains difficult and blocking the arrival of cold fronts. Therefore, there is no forecast for rain or lower temperatures in the coming days.
There is no rain forecast for the coffee regions during the week.
DOMESTIC MARKET and FOB
Over the week, only a few deals were reported on the domestic market. In the FOB, the week did not have representative demands.
Strictly soft good cup running screen: seller close to R$ 1.280,00;
Strictly soft fine cup running screen: seller close to R$ 1.320,00;
Rio Minas:
17/18: R$ 1.150,00;
Running screen with 30% low grades: close to R$ 1.070,00;
600 defects: seller close to R$ 1.220,00 and buyer R$ 1.180,00;
LOGISTICS
The shipping companies still have no allocation on the September shipments and little space left for October.
Once again, the low availability of food grade containers has directly affected the schedules, resulting in vessels omission and postponement to subsequent ships or even the cancellation of the booking by the shipowner.
We reiterate the need to send shipping instructions in advance, with more than one option of shipowner.
COVID-19 IN BRAZIL
People who received the first dose: +180.885.511
Fully vaccinated people: +170.246.503
Cases: + 34.549.915 million
Deaths: 684.784 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