Mexico Suffers Dry Bean Crop Losses

The completion of bean harvest in Mexico has revealed a number of conditions resulting in high prices for some Mexican beans and a spike in demand for U.S. pinto beans among others. While initial reports suggested minimal crop damage post hurricane, recently completed crop assessments indicate quality damage across the board in the key Mexican bean growing states of Zacatecas, Durango, and Chihuahua. At the same time, drought is impacting the bean crop in other states. The Mexican government has announced a premium of two thousand pesos per MT over the base price. Market prices for Mexican pintos are around 11,000 pesos MT.

Mexican market intelligence is estimating Mexican dry bean production at around 800 thousand MT, short of the 1.1 million MT projection. Additionally, last week, some regions in Sinaloa state registered record low temperatures and an early frost. Reports indicate major damage to bean harvests under way there, possibly even total crop loss of Azufrado and Mayacoba beans.

The market dynamic in Mexico has changed significantly from previous projections, returning Mexico to it’s place as an important export destination for our beans, especially pintos. We will continue to monitor the situation and remain committed to this key U.S. dry bean trade partner.