KC NY – ARABICA ICE NY
A week marked by significant drops in Arabica contracts in NY, with Z0 oscillating between 115.00 and 132.05 usc/lb.
The high volume of inventory in Brazil reported by several players, the reduction in daily falls of certificates in NY and the rain forecasts in Brazil contributed to the downward movement in coffee prices.
The real felt during week, on the radar of the monetary policy decision of the BACEN and the FED on Wednesday, ranging from R$ 5.3225 to 5.2095 in the period.
With the drop in arabica prices, producers were not eager for new business, keeping the domestic market at a standstill.
There is a lack of space in the general warehouses of Matas de Minas / Zona da Mata, Cerrado, Mogiana and Sul de Minas to store the large volume of coffee harvested, which also contributes to the retraction of new businesses. There are reports of the formation of long lines of trucks at the entrance to the warehouses.
CERRADO MINEIRO, MOGIANA AND SUL DE MINAS REGIONS
During this week we spoke with 7 producers, partners of Atlantica, in the regions of Cerrado Mineiro, Mogiana and Sul de Minas. All respondents have already completed the harvest and found good cupping profile, 16up screen percentage and production cost higher than in 2019.
Brazil is going through a period of dry and hot weather. In the coffee regions, the drought of the last days brings concern about the setting of the first flowering. There are forecasts of rains from the weekend on for producing regions with the arrival of a cold front, which may trigger the second flowering in coffee trees. A more significant flowering is expected in October, when more regular and voluminous rains are expected.
The lack of containers and space on vessels continues to reflect on all destinations and shipowners, hindering the fluidity of the logistics process.
Acting in advance in bookings is essential to mitigate shipment delays in contracts, therefore, the collaboration of customers is essential in not only sending Shipping Instructions in advance, but also making sure with the shipowner, when closing the freight contract, if there are guaranteed units.
Let’s keep believing and investing in the coffee culture so we can keep moving coffee forward!
Atlantica Coffee team