Weekly Report - 77th Year - n° 9

Santos, sexta-feira, 03/05/10 - 77th Year - Number 9

Coffee contracts in the ICE Futures US in New York, alternated days of highs and days of lows, following other markets, and the Brazilian physical market, without any new facts in the fundaments remained unchanged. The buying pressure continued for good quality arabica coffees, and business with those coffee lots ignored the ups and downs of the futures market.

The fact that the Brazilian Federal Supreme Court (STF) ruled that collecting FUNRURAL (Rural Fund Tax) is unconstitutional, after deciding on the Appeal to the Federal Supreme Court No. 363.852-1/MG, led the Coffee Exporters Council of Brazil (CECAFÉ) to file an action for a writ of mandamus to ensure to CECAFÉ´s associates the effects of the STF´s decision, discharging CECAFÉ´s associates from withholding and subsequently paying the FUNRURAL contribution tax, according to the exact terms of STF´s decision.

This matter contributed to make it more difficult to close business in the coffee physical market this week, since some buyers decided to continue to withhold the FUNRURAL in their coffee purchases and pay the corresponding contribution tax. The large majority of coffee producers that placed lots on sale did not accept the withholding, and practically all business closed were exempted from withholding the FUNRURAL contribution tax.

The 19th edition of the “Ernesto Illy Award for the Quality of Coffee for Espresso” (Prêmio Ernesto Illy de Qualidade do Café para Espresso) will be held today, March 5, in the City of São Paulo, when the names of the first top ten classified among the fifty finalists of the Brazilian 2009/2010 crop will be announced (for more information, please see the clipping section on this website).

Until February 28, February shipments were at 1,894,719 bags of Arabica coffee and 20,658 bags of conillon coffee, totaling 1,915,377 bags of green coffee, plus 216,350 bags of soluble coffee against 2,281,119 bags on January 31. Furthermore, until February 28, requests to issue certificates of origin for February shipments totaled 2,467,156 bags against 2,395,449 bags on January 31.

From closing on Friday, February 26, to closing today, March 5, New York - ICE fell 80 points or US$1.06 (R$1.90) per bag for contracts to be delivered in May. In reais per bag, quotes for delivery in May in ICE closed on February 26 at R$ 313.61 and today, March 5, at R$ 308.07 per bag. Today, Friday, the New York exchange closed with a 20-point high for contracts to be delivered in May.

Escritório Carvalhaes