Argentine bean troubles leave market in tight spot

A major exporter’s short crop will leave white bean markets scrambling this year.

Argentina has an estimated 114,000 tonnes of Alubia beans available for export in 2022-23, the lowest volume since 2013-14.

This year’s exports will be about half of the record 220,000 tonnes shipped last year, according to a panelist speaking at the recent Argentina Roundtable webinar organized by the Global Pulse Confederation.

Nicolas Karnoubi, trader with Olega, said the poor crop of Alubia beans was due to reduced acres and dismal yields caused by drought.

He estimates production at 117,000 tonnes, down 25 percent from the previous year’s levels. Old crop carry-in is minimal, which is why exports will be cut so drastically.

Argentina’s drought was particularly pronounced in the white bean-growing region, which is in the centre of the dry bean area in the northern part of the country.

White bean prices are strong, in the range of US$1,370 to $1,400 per tonne. But growers are in good financial shape and holding out for even higher prices because they are aware of the big shortfall in production.

“They don’t want to get rid of their white beans at the cheaper values,” said Karnoubi.

Demand is soft at the moment because European buyers stocked up at the start of the calendar year when prices were around $1,000 per tonne.

There are reports that the Europeans have enough stocks to last through October and November. Karnoubi said demand will eventually materialize because it was also hot and dry in Europe.

This is the third year in a row that Argentina has harvested smaller than normal-sized Alubia beans.

Argentina’s coloured beans fared better than the white beans as increased acres offset reduced yields.

Lucas Genero, a trader with Agrofin, said growers planted 15 to 20 percent more black beans than the previous year.

“We had a very dry season, so the yields we got were not the best,” he said.

He is forecasting 181,500 tonnes of production and 162,958 tonnes of exports, with Brazil purchasing 80,000 to 100,000 tonnes of that. The rest will likely be gobbled up by buyers in the EU, Caribbean countries and Venezuela.

Genera noted that it is hard to compete with U.S. beans in markets such as Mexico, the Dominican Republic and Costa Rica, where the U.S. faces no export taxes.

Brazil harvests three bean crops a year, the most important of which occurs in November. That will dictate how robust the black bean demand is from that important buyer.

Matias Macera, a trader with Desdelsur, said growers were unable to plant as many cranberry beans as they wanted due to weather conditions.

Demand for the crop has been robust. Argentina’s main customers are Italy, Portugal, Turkey, Algeria and Spain.

Macera said Argentina has a 60 percent share of the cranberry export market, with Canada being its main competitor.

Argentina’s bean crop is harvested in mid-June to mid-July, so it gets a jump on Canadian beans.

Cranberries change colour quickly, so the crop has to move to market fast.

“Right now we are all sold out,” he said.

Farmers harvested an estimated 37,400 tonnes of the crop and are expected to export 29,510 tonnes.

Large red kidney beans have also been flying out the door. Half of the crop has been sold and 3,000 tonnes exported, said Macera.

Farmers produced an estimated 15,000 tonnes of the crop, and 12,590 tonnes will be exported despite sky-high freight rates to key markets.

Argentina’s farmers planted 20 percent more dark red kidney beans than last year but yields were disappointing.

Genero is forecasting 43,450 tonnes of production and 35,950 tonnes of exports.

The product is priced lower than the preferred U.S. dark red kidney beans, but they are becoming more competitive.

The weather outlook for next year’s crop is not great. Forecasters are calling for a third consecutive La Nina year.

Karnoubi said that isn’t good news because soil moisture is already depleted throughout much of the country, and La Nina typically results in further drying.

Tags: Argentina, markets, white bean, Alubia beans, export, prices, Production, drought, yields, crop