4 months after the frosts in Brazil, what are the effects we see in the market?
Coffee rose again more than 400 points on Monday (1st) in the New York Stock Exchange (ICE Future US).
With this appreciation at the beginning of the month, the market once again shows volatility already expected by analysts added to the logistical problems that continue to intensify.
On that day, December/21 was up 465 points, at 208.70 cents/lbp, March/22 was up 465 points, trading at 211.30 cents/lbp, May/22 was up 460 points, at 211.80 cents/lbp and July/22 appreciated 455 points, at 212 cents/lbp.
The extent of the damage from the July 2021 frosts in Brazil and their effects is still unknown, but in areas where the coffee trees did not survive, it may take years for the production to fully recover.
LOGISTICS
The increase in transportation costs, linked to the lack of shipping containers, may play an important role in the rise of prices.
Shipping interruptions, caused in part by increased consumer demand and insufficient ships as people stayed home due to the global pandemic, have also led to a sharp increase in the cost of transporting grain to major consumer countries in Europe.
TRANSPARENCY
FARMly knows all the points that lead to the price increase of our coffees and we guarantee transparency of values from the beginning, for producers and roasters.
Here the producer puts the price of his own coffee to be valued and respected, and we make visible on our website all the necessary fees that make up the final price of the beans.
By clicking on visit the coffee (i) on the price, it is possible to open an explanation of all the values, as in the image:
We know that we cannot control the market variations, but we act so that producers and roasters are satisfied with their purchases and sales. In times of uncertainty and price increases, being transparent is even more necessary.
To check out the coffees available on our offer list today, click here.
