The Way We See It.
July 2016 –
The USDA issued its Acreage Report in late June. While this report does not break planted acres down by dry bean variety, it does break it down by state. Overall, dry bean planted acres across all varieties are down around 5%. Within this number, planted black bean acres may be down as much as 25-30% while planted pinto bean acres may be up some 10%. We continue to keep an extremely close eye on the weather in every region.
One of the more fascinating market items to watch this summer is the demand from Brazil. Brazil is the largest producer and consumer of dry beans in the world. Normally, Brazil supplements any shortfalls in its own production with purchases from Argentina and China (black and carioca beans). However, Brazil’s production shortfalls were so significant that they have been scouring the world for beans. While this demand has certainly kept global markets firm, the U.S. has not been able to take advantage from a sales standpoint due to lack of excess inventory. The strong U.S. dollar has also made exports difficult.