Dear valued partners,
Throughout this week, Arabica contracts in NY followed a downward trend in view of the possibilities of a second wave of the pandemic and a decrease in the pace of reopening that brings concern about the coffee demand. The forecast of a good 20/21 crop in Brazil has been favored by the good climate, which also pressures prices downwards, after all, we are the main coffee producing country in the world.
For the next two weeks, weather conditions may change with the arrival of polar air masses in the South and Southeast of Brazil, which brings rain and falling temperatures forecast for the main coffee regions, but without frost alerts. However, rainfall is a point of attention for quality.
The real gained strength with the approval by the Senate of the legal framework for basic sanitation in Brazil, which contributes to the country’s attractiveness for foreign capital, at the same time that the dollar stood out with international news, especially in the USA.
Exchange rate movements kept the domestic coffee business active. We received samples of coffees with high screen, good quality and good appearance, and percentage of low grade around 30%.
In periods of so many economic uncertainties as the current pandemic, future contracts are even more strategic, not only for exporters and importers, but likewise very attractive for Brazilian coffee growers in the forward market, who at the moment have taken the opportunity to anticipate deliveries with the harvest advance.
We are having some difficulties to guarantee space on the vessels for the next months. For some destinations it is no longer possible to book shipments for the month of July with some shipowners. In this scenario, sending Shipping Instructions in advance is essential to guarantee shipments.
There is an important increase in the spread of the new coronavirus across the interior of Brazil and coffee cities, a situation of concern due to the lower capacity of its health services. Thinking of helping the population of some coffee communities in which we operate, Atlantica Coffee distributed 5000 reusable masks for free to the population of the cities of Caparaó and Alto Jequitibá.
The masks were made by local seamstresses, hired by the company, thus contributing to the generation of income for the region’s population. More than 20 staffs were responsible for delivering the masks on June 13 and 21, 2020.
Let’s keep believing and investing in the coffee culture so we can keep moving coffee forward!
Atlantica Coffee team