Beans, by Ibrafe: Contracts eliminate picks and guarantee unprecedented profit for Brazilian producers

Published 2021년 2월 19일

Tridge summary

The article discusses the stable price of black beans in Brazil, around R $ 350 for type 1, with a decreasing price gap for lower types due to high demand for beans with sprouts or without shine, which are dried. Packers find a better margin with the lower priced beans. For the second harvest, producers in Mato Grosso, a major exporter, are considering beans planted under contract, such as cowpeas, Tumucumaque, Nova Era beans, mung, and azuki, which have a planting window of about 65 days and the option for pre-selling with contracts to eliminate liquidity and price risk. There is also interest in contracting less commonly planted beans in Mato Grosso, such as red, brindle, and black beans, due to the potential for profitable prices.

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Original content

Black beans remain around R $ 350 for type 1 and the difference in price for the lower types is getting smaller. This is due to the fact that beans with sprouts or without shine, passed in a dryer, have a much greater demand than supply. Packers have, in the second brand, in many cases, the possibility of earning a better margin than with the more expensive ones. Looking now at the planting of the second harvest, producers, especially from Mato Grosso, responsible for at least 85% of the country's exports of Pulses and Special Harvest, have turned their attention to the opportunities that are opening up for beans planted under contract. Cowpeas, Tumucumaque and Nova Era beans, as well as mung and azuki fit into a planting window of about 65 days, with the option of pre-selling with the contracts eliminating the liquidity risk and, especially this year, the price risk. After all locked price is the guaranteed profit. There is also a great opportunity to have a contract for beans ...

Source: Portal Do Agronegocio