Challenges in the Brazilian bean market due to limited supply in January

Dried Common Bean

Published Feb 6, 2024

Tridge summary

Brazil's beans market faced challenges in January due to a limited supply and low stocks, particularly in São Paulo, caused by adverse weather conditions like drought. This situation could impact the 2023/24 first harvest and has led to increased prices. The market has also seen a growing reliance on imports, primarily from Argentina. Despite these challenges, sales have been satisfactory due to compensatory prices. The introduction of new lots, particularly the Rio variety, has helped reduce prices, but the supply of black beans remains limited, keeping their prices high.

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Original content

The beans market in Brazil faced substantial challenges throughout January, being marked by limited supply and low stocks, especially in São Paulo. Evandro Oliveira, analyst and consultant at SAFRAS & Mercado, highlights that adverse weather conditions, such as drought, damaged harvests, resulting in a possible failure in the first harvest of 2023/24 and higher prices. The growing dependence on imports, mainly from Argentina, added to supply concerns. At the beginning of the month, prices experienced a considerable increase due to the challenges faced in the first harvest of 2023/24, especially carioca beans. Despite buyers' initial hesitation at the higher prices, sales were considered satisfactory. Adverse weather impacted planting in several regions, resulting in limited supply and compensatory prices. Over the weeks, the significant entry of new lots, especially the Rio variety, contributed to a reduction in prices. The restricted supply of black beans persisted, with few lots ...

Source: Portal Do Agronegocio