Dry edible bean production in the United States is way down from 2002, but that comes as no surprise to Canadian observers.
In its latest crop report the United States Department of Agriculture forecast a bean crop of 1.07 million tonnes, down from 1.36 million the previous year.
The 21 percent decline was anticipated by most industry participants because acreage was down 18 percent this year.
“The acres have dropped off dramatically on the navy and black beans,” said Manitoba Pulse Growers Association director Dennis Lange.
Navys, blacks and pintos account for 83 percent of Manitoba’s 2003 dry edible bean crop. It’s the province where the lion’s share of Canada’s beans are produced.
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Lange said traders are still working through a glut of three million bags of navy beans carried over from 2002. That’s a lot of product considering North American annual consumption has hovered around seven million bags for the past 30 years.
Prices for navy beans haven’t moved much. When harvest began, the crop was selling for 22 cents per pound. Over the last few weeks the going rate has fallen slightly to 20 cents.
“There hasn’t been much movement or demand for beans this fall,” said Lange.
Pinto acres remained relatively constant in Manitoba and the U.S. in 2003 because it is a commodity that is fairly easy to sell.
“Traditionally they are a bean that always seems to find a home,” he said.
Pinto prices have dropped slightly to 17 cents per lb. from a pre-harvest level of 22 cents.
The market for black beans largely depends on consumption patterns in South America and Mexico.
“So far the shipments to Mexico have been quite slow. Until things change there I don’t expect a huge change in that black bean market at all,” said Lange.
Black bean prices are heavily dependent on when Mexico decides to fulfil its North American Free Trade Agreement obligations.
“We won’t know that until Mexico announces its import auctions and import auctions usually get announced late December, early January.”
Those auctions determine how many beans will move into the country at lower duty rates.
The good news is that black beans seem to top 40 cents per lb. every second year, and last year they were selling for less than half that amount. Optimists would say the industry is due for another surge.
