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WEEKLY REPORT – COFFEE MARKET IN BRAZIL

por jun 19, 2020Coffee, Relatório de mercado13 Comentários

Dear valued partners,

 

The Dollar lost strength during the week as well as ICE-NY. The Real also recovered a bit from the record lows registered on the previous weeks. At the internal market, these factors reduced producers’ appetite for business at the new crop and current crop that also suffers from low availability.

 

Our customers abroad were more interested on new deals and price ideas for both crops, and especially for 20/21. The concerns regarding the impacts of the pandemic on coffee demand remains, as we see stocks increasing abroad. In Brazil, ABIC’s president mentioned a 30% decrease on domestic consumption since the end of March.

 

The good news is that agribusiness had a positive GDP in the first quarter of the year which increased by 0.6% in relation to 2019, pushing up once again the results of the economy, according to data from the Brazilian Institute of Geography and Statistics (IBGE).

 

Not unlike, the coffee harvest season is long awaited by the population of the producing regions, as it is an opportunity for extra income for many families, which in the midst of the current economic scenario becomes even more important and strengthens the economy of these cities.

 

This week were registered temperature below 10ºC in coffee regions, even if it is still autumn in Brazil. The intense cold was brought by a mass of polar air that shall dissipate within a few days.

 

At this moment, it is important to be attentive to the weather forecasts, and in particular, to the rain and cold fronts that could affect the harvesting and post-harvesting.

 

Until now, producers have not reported to us any problems regarding labor availability for the harvesting, and they continue with the use of masks and other safety protocols that were widely publicized.

 

We keep a daily remote contact, seeking to adapt together to the new situation. Let’s keep believing and investing in the coffee culture so we can keep moving coffee forward!

 

Stay well!

Atlantica Coffee team

13 Comentários

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