STAT Communications Ag Market News

Beans Stocks Tightening, But Impact Uncertain

PANAMA - Jan 19/17 - SNS -- Disappearance for dry edible beans has been trending upward since 2011, but average annual production in the North American Free Trade zone has not grown quite as fast. The net result is the stocks to use ratio has trended downward.

Annual variations make it hard to see these trends from one crop year to the next. It is clearer when you look at the rolling five-year averages for production, usage and ending stocks. Of the three numbers, the most significant is the stocks to use ratio. This tells you how many days worth of beans are on hand at the end of the marketing.

In recent years, that ratio has dropped from an average of 16% or 59 days between the 2006 and 2010 to 14% or 53 days in the previous five marketing years. This season is expected to finish with a stocks to use ratio of only 7%, or enough beans to cover 26 days of demand.

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