USDA Pessimistic About 07 Bean Area

WASHINGTON - Dec 21/06 - SNS -- Stronger values and relatively tight supplies of North American dry edible beans are not going to be the kind of "automatic indicator of a significant increase in area planted next spring" they have been in the past, asserts the USDA's Gary Lucier.

Writing in the December edition of the Economic Research Service's Melons and Vegetables Outlook, Lucier said, "Dry beans may face a substantial challenge in the coming year from traditional rotational crops such as corn, soybeans, barley, and wheat.

"Prices for these grains have risen greatly over the past few months due in part to strong demand for field corn by a rapidly expanding ethanol industry. Fundamentals in the corn market set the tone in many agricultural crop markets. Currently, field corn is running at more than $3.00/bushel, wheat is over $4.50/bushel, and soybeans are over $6/bushel -- all well above a year earlier and their long-run averages."

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