BEAN PRICE SPIKE REPORTED IN BRAZIL
March 21, 2019Sao Paulo wholesale carioca bean prices in February were reported as high as $1,713/MT, double the price in January. The price spike was due to reduced first crop production and weather related crop damage. Prices reported the first week of March at the Sao Paulo bolsinha were lower, carioca especial (above commercial grade) averaged $1,370/MT, but there is very limited availability. Consumers are reportedly buying second-rate cariocas or switching to alternatives like black beans.
As a result, Black bean prices were pulled upward. Sao Paulo wholesale prices climbed from $844/MT in January to $1,112/MT in February. The average price as of March was $870/MT. At the end of March, the first beans from the second harvest in southern states will start to enter the market, but May is the peak. Industry insiders note simply that there are not enough beans to meet consumer demand. We are working hard to ensure that this translates into new opportunities for sales of US dry beans to Brazil. When Brazil buys, it can translate into big numbers for US dry bean sales as occurred in the 2016/2017 crop year when we exported almost 14,000 MT of beans. We just completed participation in a new trade show opportunity in Brazil, ANUFOOD (report forthcoming), we will be there again in June in Rio for the GPC’s annual conference and the Brazilian Bean Forum which takes place immediately after. We are focused on increasing our foothold in this important market and will continue to keep the industry informed.