Australian Mungbean Association
Australian-grown mungbeans have quality written all over them!
2022 market outlook
Secure your marketing arrangements early to give yourself a ‘money bean’ experience this season.
7 January, 2022
2022 market outlook
by Dale Reeves, AMA President
With a fantastic start to the summer mungbean season, with the prospect of harvesting a large crop well under way. Planting seed sales have been at the highest levels since 2016 and records could fall to this year’s production. With last year’s production hitting over 110,000 mt exported, and with this year’s seed sales increasing by 75% on last year, there are going to be some beans to process and market in 2022.
Last year’s better-than-average crop fell into the start of the global shipping issues however container availability did not hampering exports due to the majority of trade heading to Asia. That trend appears to be the same this year with higher demand once again coming from China. As with most high production years, the time to process and ship cargo is the major delay. Mungbeans are not a bulk commodity so all products must be processed, bagged and packaged to meet buyer specifications. Being familiar with the process and having a relationship with your buyer or processor will make your mungbean marketing experience so much simpler.
Contact your processor early to ensure that you have a market secured that suits you. Leaving it until harvest time may result in you having limited options or having to wait three to four months to have your beans processed and paid for.
Forward contract options are always a good tool to use to hedge risks that are outside of the normal trading platforms. Having a forward contract may provide ‘as it comes harvest delivery’ solutions, set a middle price to base further pricing trends from, allow your product to make it to market sooner and reduce the strain on harvest delays due to storage issues.
International market prospects remain good with prices indicated currently within last year’s ranges. The supply–demand mechanisms are showing that buyers are keen to continue to secure product and are not satisfied with current purchasing volumes. That being said, new crop forward selling by growers has been at an all time low given the amount of seed distributed year to date. This may see the Asian market become satisfied in the future and cause some marketing delays if there are no other buyers globally.
Just prior to the holiday season, India had made an amendment to the mungbean import quota and tariffs that had imposed market restrictions for Australian access. India buys a range of qualities and in recent years the dependency on African origin ‘cheaper’ beans has seen a major decline in Australian origin beans in that market. There is a chance that may change as internal demand increases and supply from other origins is in decline due to environmental constraints.
Action your strategy prior to harvest to give yourself a ‘money bean’ experience this season.
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