Brazil: Volume of coffee deliveries reflects demand from roasters

Over the past week, coffee prices have responded to a slightly weaker Dollar Index (-0.45%), as agents assess the extent and potential of recent rainfall in Brazil's coffee-growing regions. These rains will benefit the flowering that has already occurred and also stimulate new flowering in areas where the harvest has been completed. According to Natália Gandolphi, coffee analyst at hEDGEpoint Global Markets, on the demand side, the volume of deliveries reflects the interest of roasters in contrast to an improvement in the logistics scenario in the coffee market. By the end of August, the current delivery notification period saw a significant drop of 40%. “However, it is important to note that this decrease was driven by lower deliveries from Brazil, which showed positive variations in differentials during this period. On the other hand, Honduras experienced a decrease in FOB differentials along with a year-on-year increase in deliveries,” he says. According to data released in ...