USDA Expects Fewer Beans in 2008

WASHINGTON - Dec 18/07 - SNS -- Dry edible bean acreage will likely decrease in 2008 because of stiff competition for land resources from wheat, soybeans, and corn, according to USDA economist Gary Lucier.

Writing in the December 2007 edition of the USDA Economic Research Service's Vegetables and Melons Outlook, Lucier said, "Prices for these grains remain high relative to past years due to strong domestic and world demand.

"Fundamentals in the corn market usually set the basic market tone for many agricultural crops. In November, grower prices for field corn were averaging $3.49 per bushel (up 21% from a year ago), durum wheat was $12.70 per bushel (up 175%), barley was ($4.69 per bushel (up 61%), and soybeans were $9.48 per bushel (up 56%) -- all well above their longrun averages," Lucier said.

"In response, dry bean prices had been rising in an attempt to maintain competitiveness. However, given current price relationships, input prices, and the outlook for low ending stocks, especially for many of the smaller dry bean classes, it appears that 2008 U.S. dry bean plantings will again decline modestly from the 1.5 million acres of 2007. Assuming that yields return to either trend or their longrun average (which is below the 2007 level), U.S. dry bean output would decline from this year's 25.2 million cwt (100 pound units)."

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