USDA Expects Strong Bean Markets

VANCOUVER - Oct 25/07 - SNS -- North American dry edible bean markets should remain strong through the balance of the marketing year in an effort to "assure competitiveness with soybeans, wheat, and corn next spring," says the Gary Lucier of the USDA's Economic Research Service.

Writing in the October edition of the Vegetables and Melons Outlook magazine, Lucier said, "Through mid-October, grower and dealer prices remained strong relative to past years. The only classes observed to have grower prices below a year earlier were baby lima and blackeye, with both these classes still well above the averages experienced during the past 5 years.

"The greatest upward price movement early this season has been for Great Northern, light red kidney, black, dark red kidney, and navy beans. For pinto beans, which typically account for 40 to 45% of all dry bean production, prices may pause as the crop size becomes officially established. However, pinto grower prices during 2007-08 will still likely average above the relatively strong $21.15 estimated for the 2006-07 crop."

The strength in grower markets reflects "scant grower offerings, low beginning stocks, and the general upward ratcheting of all field crop prices caused by strong domestic and world demand," Lucier notes.

His comments in the Vegetables and Melons Outlook continue as follows:

The crop year began on a strong note, with September's preliminary "all dry bean" price of $24.90-cwt averaging one-third above that of a year earlier. If this price holds, it would be the strongest opening price since 1988's drought-induced $27.10. Despite the small gain in production, it does not seem likely that prices for the majority of dry edible beans will experience much, if any, seasonal softening following harvest. In fact, this may not be a typical marketing year for most classes of dry beans partly because of the complexities offered by strong markets for virtually all field crops.

Because of high prices and good cash flow for most crops, growers are less likely to be anxious sellers this year. In a typical year, about a third of all dry beans are marketed by the end of October and the current market tone (limited trading, few price changes) does not seem to support that level. This season, growers may adopt a slightly more cautious "wait and see" approach as they did in 2000-01, when less than 30% of the crop was moved before November.

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