Exporter of pinto beans and black beans
The dry bean market last week seems to have developed a bearish undertone that had previously been absent the past several months. Although the market had been long expecting prices to drop, it really now becomes a question of how much risk is there on the downside? Last week pintos growers indicated for the first time openly they were willing to accept bids between $33-$35, however even this week $33 is starting to sound and feel a bit inflated. The downward pressure is forcing bean dealers across the board to sacrifice 1LB of their own flesh as prices look prime for further losses in the coming weeks, especially as the industry shifts focus to the estimated acres being planted for the upcoming crop year. Light Red dealers were mixed and held steady in the lower $60’s, and black beans are looking a bit tired of supporting the $40’s. One note of interest was N.D/MN black bean growers continue their uncertainty by not being established AGAIN this week. Some markets participants could take that as a signal they are preparing to accept lower values soon and are just collaborating on an acceptable value for their bean crop before announcing it to the market.
Bottom line: Further weakness expected in the coming weeks unless commodity markets begin taking their Flintstones vitamins.