Dry inflates mungbean price
MUNGBEANS are expected to be a hot commodity for farmers in the region this summer.
Low yield and quality from high temperatures could give farmers the incentive to make the most from their mungbean.
Domestic market shortage is expected to bring the price up to around $1200 a tonne for middle-grade product.
Australian Mungbean Co Managing Director Damien White said it was close to the high of last year before the main crop came off.
“Last year it got up to close to that, but then it drifted back to about $1100 when main harvest time was on,” Mr White said.
“The market’s strong overseas but I think this extra spike can be mainly put down to domestic trading shorts.”
The price of mungbeans is thought to have gone up due to a combination of factors pushing up demand.
By comparison, the sorghum price is expected to stay flat due to low demand and carry-over stock affecting export prices.
“I think there’s a strong possibility it will stay high because of the long protracted dry which is affecting all regions’ production,” Mr White said.
“Crops are in all different stages but because we’ve had such a prolonged period of high temperature and no rain it’s really reduced the forecast crop size.
“If that wasn’t the case, these domestic shorts would wind their way through reasonably quickly and we’d be back to trading on a true market, but I don’t think the volume of crop is there out of Australia this year.”
As a result of the weather, the crop is unlikely to yield as much, adding extra incentive for farmers to plant as much as they can.
Mungbeans have a good degree of drought resistance compared to other crops due to having a short planting cycle.
In wet soil it can get in and out of the ground quickly before the effects of prolonged drought can really take hold.
But in this extreme dry, there’s a chance not only the yield but the quality of the product could be affected.
The market’s strong overseas but I think this extra spike can be mainly put down to domestic trading shorts. — Damien White
“The varieties we’ve got have been very good in terms of how they match our dry land production season,” Mr White said.
“But we’re finding they’re coming in very quick and that’s shortening them up and causing discolouration of the seeds.”
DOMESTIC MARKET SHORT: Mungbean prices are expected to climb this summer.