Bean Market October 2013
Bean Market October 2013
If there is any certainty in life beyond death and taxes, change would have to be included. The US dry edible bean market is going through a peculiar time as harvest is getting wrapped up and everyone begins tallying yields. Depending on the geography, bean growers are either satisfied or they aren’t with this year’s crop.
It’s been a painful season for upper Midwest and Rocky growers beginning with less acres being planting versus last year and it hasn’t really gotten any easier since. Floods, hail, bad planting conditions, continued rains, and a late season have all contributed to this year’s crop obstacles and therefore, its results. For those who have been graced with a bountiful crop this year they can be considered blessed to say the least.
As growers and processors go through their forbidden dance of making and baking negotiations of beans, prices will have to find it’s center of gravity…and currently, it feels as if no-one really knows where the market is in terms of market potential (especially with the Govt shutdown, but that’s another story). If one looks at the most recent figures from the United States Department of Agriculture weekly bean pricing which values reflect new crop, pricing hasn’t really moved as dramatically as it did since it’s last recent bullish move…and offers are being made in bigger ranges rather than smaller ones because buyers and sellers both seem to be doubting each’s fair value.
With that….I will add that fundamentally there is a much more bullish case versus any bearish counter arguments that can be presented at the moment, but the market will sort that part out by itself shortly. Export markets will also contribute its portion of volatile supply and demand, especially as South America increases it’s global agricultural influence on market trends.
Bottom line: It’s as if buyers and sellers were both in the jungle glaring towards one another waiting for the other to either attack or run. Something’s going to happen but nobody knows what.
To learn more about USDA bean specifications please click here.
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