Market Updates

Mexican bean and chickpea seedings for the Autumn/Winter cycle have been delayed due to the effects of Hurricane Norma. Pulse acreage may look different by the time of planting, as the storm has also brought much-needed water to the Mexican reservoirs, expanding farmers’ options.

However, the water brought by Norma may not be enough. The technical director of the National Water Commission (CONAGUA) has said that the situation in Sinaloa is "critical" and that reservoirs are at "the lowest in the last 28 years". As of last week, reservoirs of water in Sinaloa – which is the largest chickpea-producing state in Mexico – were more than six billion cubic meters of water in deficit. This is despite the rains brought by the hurricane. 

Nevertheless, what additional rain there is will be a positive for farmers, says David Larios, CEO of Aliansa: "The Hurricane in Sinaloa has been beneficial because it brought water to reservoirs where it was scarce. As a result, additional seeding permissions will be granted by the Ministry of Rural Development."

Asked which crops the extra permissions would benefit, Larios replied: "The extra water favors corn seeding. We had very high expectations for chickpeas, but now we have to see how those volumes may change."

Cristobal Lopez, CEO of Comercializadora Los Arbolitos, explains that some areas of Sinaloa have been negatively affected by the storm, while others stand to reap the benefits of the increased water reserves: "Los Mochis were most affected in terms of crops that were already in the ground, but Guasave, Guamuchil, Angostura and Culiacán can benefit from the situation. Farmers in the north don't want to take the risk of seeding beans as it's too late in the year, but the central and southern municipalities do seem to be taking the risk, with seedings of chickpeas, yellow beans, and pinto beans taking place right now, alongside sorghum, sesame, and a little bit of corn."

Lopez believes beans will be important in the seedings and could be lucrative for farmers given stocks in the country: "In terms of beans, the situation continues to be difficult in Mexico. It is thought there is a deficit of 400,000 MT across all bean colors, and the American market doesn't want to sell at the moment, creating favorable conditions for seedlings of beans in Sinaloa. The bean market is favorable for farmers, and we're seeing them taking the risk to plant beans a little bit out of the normal cycle given the high prices.”

Other bean-producing states such as Chihuahua have warned that they could see a 40% drop in seedings of all crops across the state due to a lack of water. 

Concerns remain that these difficult conditions will continue into the 2024 spring cycle that begins in March – this could lead to further low stocks of beans and other pulses.

Arturo Zubia Fernandez, Head of Agriculture at the Ministry of Rural Development, has suggested that issues with scarcity of beans are likely to arise in spring 2024 due to the lack of water reserves, saying: "It’s a serious problem, as the non-irrigated area has zero production. “The lack of beans we are going to have is worrying.”