Climate challenges and lower supply in the Brazilian bean market at the beginning of 2024
Dried Common Bean
Brazil
Sustainability & Environmental Impact
Market & Price Trends
Published Jan 9, 2024
Tridge summary
The start of 2024 presents challenges for Brazil's bean market, with limited supply causing prices to rise. The shortage is due to producers bringing forward harvests and sales, combined with adverse weather conditions such as drought. There is concern about shortages in the first half of the year, with prices expected to remain high at least until the entry of the second harvest of 2023/24.
Disclaimer: The above summary was generated by a state-of-the-art LLM model and is intended for informational purposes only. It is recommended that readers refer to the original article for more context.
Original content
The beginning of 2024 for the bean market in Brazil is challenging, with a series of obstacles that promise to influence the production chain and product prices. Analysts and consultants, such as Evandro Oliveira, from SAFRAS & Mercado, point to a limited supply, evidenced by low stocks in São Paulo, the country's main consumer center. The shortage scenario is largely the result of the decision of many producers to bring forward harvests and sales, driven by attractive prices and satisfactory margins. This strategy, combined with adverse weather conditions, especially the drought declared in regions vital for the crop, emerges as a crucial factor for the restricted supply of the grain. The analyst highlights growing reports of a significant drop in the first 2023/24 harvest, estimating between 25% and 30% in Paraná and similar impacts in states such as Minas Gerais, Bahia, Goiás and the Federal District. This limitation in supply, added to the potential drop, is directly reflected ...
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