Dear valued partners,
Throughout this week, NY Arabica contracts were in decline, but the devaluation of the real supported domestic coffee prices, helping to maintain business volume with coffee producers and exports.
In the local scenario, agribusiness remains the most dynamic and positive sector in the Brazilian economy. According to the bulletin released by MAPA on June 10, Brazilian agribusiness exports broke a record in May, with around USD 11 billion in commodities traded (+ 17.9%), representing about 61% of the total exported by the country.
Coffee was the 5 th product on the list (4.7% share) and generated USD 468 million (+ 20.4%) in the Brazilian economy, second only to soybeans, meat, forest products and the sugar and alcohol complex.
Brazilian political tensions instigate caution, but the biggest highlight here was the eighth consecutive reduction in the basic interest rate, the Selic, which went from 3.0% to 2.25%, the lowest historical level.
Abroad, the fear of a second wave of the pandemic has moved the world’s stock markets with the increase in cases of Covid-19 in China and the USA, affecting the currencies of emerging countries, which includes Brazil.
The good progress of the record-offering new crop in Brazil is one reason for the low prices of KCNY. Throughout this week coffees were offered with 30-35% of leakage, a lower percentage than in previous weeks, besides presenting good quality cups, good appearance and dryness bean uniformity.
We are one day away from winter, and the forecasts of dry and sunny weather in most producing regions favor the advance of the harvest and good drying of the coffees. It is the second half of June and, the harvest has already started in the higher regions, such as Alto Caparaó, in the Matas de Minas region, except for a few higher and colder micro-regions that will only start harvesting in July. The remaining crop 19/20 is scarce, but still generating some
Let’s keep believing and investing in the coffee culture so we can keep moving coffee forward!
Atlantica Coffee team