USDA Expects More Beans in 2009

VANCOUVER - Dec 19/08 - SNS -- The USDA's Economic Research Service (ERS) expects dry edible bean acreage to rise between 5% and 10% in 2009 as long as prices remain as competitive with those for major grains and oilseeds as they are today.

Writing in the December edition of the Vegetables and Melons Outlook, Gary Lucier made the prediction even though markets for dry edible beans will end the calendar year "on a very quiet note with the majority of product movement occurring under contract.

"Because open market sales volume has been very limited, price discovery in the U.S. dry bean market has been challenging. Few grower bids or dealer prices have been established for most bean classes since harvest was completed. Combined with the traditionally sluggish movement over the holiday period in December, little additional price information will likely be forthcoming until early 2009.

"Given the wide fluctuations experienced in commodity and world economic markets over the past year, market participants have become very conservative, waiting for the dust to settle. As light is shed on some of the unknowns (South American crop potential, production by class in the U.S., commodity price trends, world economic well being, etc.) in U.S. and world markets over the next few months, dry bean markets should begin to thaw as participants slowly gain confidence in the changing market environment."