Café opens week with technical adjustments following Russia vs Ukraine

The Arabica coffee futures market opened the week with technical adjustments to the main contracts on the New York Stock Exchange (ICE Future US). The coffee market remains focused on the conflict between Russia and Ukraine, which has put pressure on prices in recent weeks. The two countries together consume an average of six million bags per year, which raises uncertainty regarding the consumption of the drink.
Around 08:19 (Brasília time), May/22 was up 5 points, traded at 222 cents/lbp, July/22 had an appreciation of 20 points, quoted at 221.60 cents/lbp, September/22 had a high of 20 points, traded at 220.30 cents/lbp and December/22 had an appreciation of 25 points, quoted at 217.95 cents/lbp.
In London, the conilon coffee also opened with stability. May/22 advanced US$ 3 per ton, worth US$ 2098, July/22 had a high of US$ 2 per ton, quoted at US$ 2074, September/22 had an appreciation of US$ 2 per ton, traded at US$ 2070 and November/22 there was a drop of US$ 6 per ton, quoted at US$ 2059. Last Friday (11), the Brazilian Coffee Exporters Council (Cecafé) released the report on shipments for the month of February. Brazil 3.4 million bags of coffee in February 2022; volume represents a slight improvement of 1.6% compared to last month, but logistical problems continue, according to Nicolas Rueda, president of Cecafé.
The outbreak of the war between Russia and Ukraine starts to generate concerns and turns on the warning light for the Brazilian export sector. “In addition to all the tragic human factor that a war implies, as we have unfortunately seen, the suspension of ships docking in both countries by shipowners and the withdrawal of some Russian financial institutions from the Swift financial system create difficulties that may reflect in the next shipments to Russia”, analyzes the president of Cecafé.
According to him, it is premature, so far, to make a projection on the real impacts, since the information base is the certificate of origin of the International Coffee Organization (ICO), required to support all shipments from the country, and also there are no numbers that allow an accurate diagnosis to be made.
In 2021, Russia imported 1.22 million bags of coffee from Brazil, generating revenue of US$ 177.1 million, which placed the Eastern European country in sixth position in the ranking of the main destinations of the national product. In the first two months of this year, the nation remains in sixth place on the list, accounting for the purchase of 233,642 bags, an amount 14.4% greater than the amount imported in the first two months of last year.
Source: Noticias Agricolas 

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