Weaker coffee differentials in FOB exports

429

Wider differentials in the FOB Brazil market. Pressure from the supply of Brazil’s 2020 crop, high dollar, and recovery on ICE justify the weaker indications. Good MTGB coffee is trading at -35 cents against ICE Futures U.S. Good cup 17/18 is around -25 cents against ICE. Fine cup 17/18 opened a little more, going from -18 to -20 cents. These differentials serve as reference for shipments in Sep/Dec 2020 and Jan/May 2021.

Idea for new crop with shipment between July 2021 and June 2022 is trading around -35 cents for good cup MTGB and -26 cents for good cup screen 17/18. Fine cup MTGB is indicated at -25 cents, while screen 17/18 changed from -17 to -20 cents against ICE Futures U.S.

Rio cup for Sep/Oct shipment is indicated at USD 78.00 for screen 17/18 and USD 75 for a 50-kg bag for screen 15/16. Idea for Jan/Jun 2021 at -50 cents for screen 17/18 and -55 cents for screen 15/16. The differential of conillon 13 up was stable at -4 cents against ICE Europe (converted into USD/lb) for delivery in Sep/Oct 2020.