Differences in Quality Drive Price Variations in Brazil's Bean
Quality Impacts Prices in Brazil's Carioca Bean Market
The Brazilian carioca bean market experienced low activity last week due to weak demand and falling prices. Analysts reported minimal deals as cautious buyers refrained from purchasing after recent price declines. Even top-quality beans, such as standard 9.5, saw prices drop to $0,97 per kg, while lower-quality standard 9 beans were offered at $0,91 per kg, with no sales recorded.Supply remained concentrated in Minas Gerais and São Paulo, with smaller contributions from Goiás and Paraná. Beans from Goiás, favored for their low moisture, saw higher demand, while freshly harvested beans from Paraná faced quality concerns. In Itapeva, São Paulo, increased grain availability further pressured prices.
Low-Quality Beans Struggle in the Market
By midweek, the market was flooded with beans of reduced quality due to rainfall. These defective lots deterred buyers even when offered at discounted prices. Premium beans from Minas Gerais and Goiás maintained their appeal but struggled to compete with São Paulo’s competitive prices. The slow pace of sales is likely to continue as the upcoming harvest could further lower prices. However, limited supply may offer slight market stabilization in the coming weeks.At the week’s end, the absence of premium beans continued to hinder sales. Buyers showed minimal interest, and retailers shifted their focus to festive products like lentils. Producers resisted offering significant discounts, while buyers avoided increasing bids. Packers are expected to ramp up purchases during the peak harvest period.
Black Bean Market Follows Similar Trends
The black bean market mirrored carioca trends, with limited liquidity. The highest-quality beans attracted offers up to $1,01 per kg, but isolated deals occurred between $0,98 and $1,00 per kg. In São Paulo’s Cereal Zone, commercial-quality beans were priced at $0,94 per kg, yet demand remained focused on specific needs.Price pressure persisted throughout the week due to ample supply and weak demand. Early harvest beans from Rio Grande do Sul and Paraná increased availability, further driving down prices.
Exports Provide Relief As Domestic Stagnation
With domestic sales slowing, exports have become critical for clearing production. A strong exchange rate of $6,00 per dollar has enhanced the global competitiveness of Brazilian beans. Analysts noted that the favorable exchange rate reduces the necessity to import beans while boosting foreign trade.In the 2024/25 season, Brazil exported 277,910 tons of beans, earning $268,18 million in revenue. Imports totaled 33,060 tons, costing $28,88 million, resulting in a significant trade surplus. Key export markets included India, Venezuela, and Mexico, underscoring robust international demand for Brazilian beans.
Conclusion
The Brazilian bean market faces ongoing challenges from low domestic demand and quality issues. As new harvests enter the market, prices may remain under pressure. However, strong export demand and limited availability of premium-quality beans could provide a buffer. Producers must balance cautious domestic buyers with robust international markets to maintain stability.Click here to reach our trading platfrom CMBroker
