Last Updated on October 1, 2020 by monica chan
According to commodity trader, due to Brazil’s unusually productive harvest means highest-ever coffee exports as growers capitalise on the local currency’s slide against the dollar.
Green coffee exports are expected to top 3.5 million bags this month, which would be the highest ever for September and the most since December 2018.
Shipments are on track to hit a record in the three months through November after falling in August Despite logistical bottlenecks at ports, the flow of exports has increased a lot, signaling record volumes for this month and the next two.
Carlos Alberto Fernandes Santana, a director at Empresa Interagricola SA, a unit of trader Ecom Agroindustrial Corp.
In the last three months, the Brazilian Real is the worst performer among major currencies, providing traders with an attractive exchange rate for overseas sales in US Dollars. An estimated 60% of the crop was sold early September.
Since January this year, Arabica-coffee futures are heading for their steepest monthly decline due to Covid-19 leading to a drop in coffee consumption in cafes – which Arabica coffee beans are mostly used. This came at a time when favorable weather conditions in producing countries signal good crops.
BarTalks had previously reported, a shortage of storage in Brazil has slowed shipments, with beans from this year’s bumper harvest stuck in warehouses.
Still, container shipping giant A.P. Moller-Maersk A/S said it has managed to fulfill all contractual agreements with coffee customers.