Pinto Bean Market Prepares Parachute

The Northharvest Bean Growers Association released bearish news today for the pinto bean market as an expected much larger supply is likely to drive prices down into the twenty-dollar range for growers. Pinto values have been in a decline across the marketplace in a slow parachute-like drop, and the United States Department of Agriculture did not establish any pinto bean prices this week in most bean growing states as they prepare the market for new crop pricing in the coming weeks. The exception was in WA/ID, which did post current crop pricing at $42/44, but even those values cannot be taken too seriously because they are not reflective of market sentiment. The market is feeling a bit anxious at the moment because on one hand producers do not want to see a free-fall in prices all of a sudden, however; other segments of the industry would welcome lower prices too. Unfortunately for United States bean growers, processors, and exporters, Mexico also seems to be having the appropriate weather conditions for a good crop this year, which will make them less likely to import US pinto beans. Mexico will instead end up competing with us for export business this season. For now, let’s hope the parachute has already been deployed, and a slow descend is in place preparing for a soft landing on solid ground somewhere between here and there.