2017-2018 Dry Edible Bean Prices: Where do we go from here?

Yes… We are alive over here at http://www.drypintobeans.com! It’s been a quiet one this season, but we are alive and kicking now bean lovers! So…Where do we go from here? It’s a good question. Dry edible bean prices did not move much this season. Prices have remain subdued for various reasons. Slow export sales to Mexico and other Latin markets have been lackluster this year causing prices to be soft. The USDA weekly report has not provided any real insight into price action. Most dealers have been off the board for several weeks…now turning into months. Overall, things have been flat in a market that has been waiting for planting season to arrive so weather related issues could drive price action. Below are graphs of North Dakota and Michigan, both with opposite weather problems.

Two of the US’s largest dry edible bean growing States: North Dakota and Michigan are experiencing averse weather conditions. Western and Central North Dakota is suffering drought-like conditions and is in bad need of moisture, and the recent flooding in Michigan’s dry edible bean growing Counties of Huron, Bay, Midland, and Isabella is causing most dealers to be off the board until damage has been assessed properly. Needless to say, this is the first sign of real volatility the US dry edible bean industry has experienced all season. Growers are bullish for the first time in awhile and with Mother Nature coming into play late into the planting season, it looks like she will dominate the market’s price action until harvest.

Aside from weather problems influencing bean price action, Mexico, which is one of the US’s main export markets for dry edible beans has not been buying this season. Why? The Mexican Peso has been on the receiving end of US dollar strength since Trump took office and threatened to pull out of NAFTA. However, in the past several months the Mexican Peso has been gaining strength, and increasing Mexico’s purchasing power to buy beans from the USA. Below is a monthly chart of USD/MXN, current price is roughly 17.81 MXN Pesos for every 1 US dollar. USDMXN M1 (06-28-2017 1252)

That being said, Mexico’s purchasing power has been quietly increasing for the past few months. Perhaps by the time new crop dry edible beans are ready to be harvested, the Peso will be stronger and Mexico will step back into the US market to purchase.

Circling back to the original question asked: Where do we go from here, who really knows? But losing acreage to soybeans, present averse bean growing weather conditions, insurance deadlines, and a lack of offers from growers is potentially setting the stage for “the perfect storm” in certain dry edible bean varieties.

Looking above at prices for Black beans from Michigan and North Dakota, we can see a historical price average for each month going back to 2011-2012.  The 2015-2016 season was the lowest prices on black beans being offered from dealers and growers, which can be viewed as bottom in prices going back eight years. This is pretty significant because dry edible bean prices do not typically spike or drop in a short matter of time unless catastrophic weather or outside markets influence price action. However, given the fact two of the largest US bean producing states are experiencing averse weather conditions and the largest importer of United States dry edible beans has continued to gain purchasing power; industry participants should wake up and smell the bean dust!

The 2017-2018 dry edible bean planting season is off to a volatile start. Should averse weather conditions continue to influence this year’s dry edible bean crop and Mexico’s Peso continue to strengthen, we could have a recipe which would create “the perfect storm” for black bean and pinto bean prices to surge. These two varieties seem to be positioned best for an upside move based on today’s market conditions; whereas other bean varieties do not have as much bullish potential from the volatility currently being experienced.

Bottom line: It’s still way too early to fully calculate the extent of the weather damage across State lines, but dry edible bean bulls have the conn right now.

Recent update dated July 5, 2017 from Michigan Bean Commission Leader Joe “The Man”‘Cramer… (Not to be confused with Mad Money’s “Jim Cramer”… Joe is better)

I asked some agronomy folks to give me a couple of comments on the dry bean crop in their respective areas this morning.  Thought I’d share the feedback I received…

 

  • Just looked at some more this morning. For the most part stands are fair to good depending on planting time. I think most of the growers I work with finished 7 to 10 days ago. We have beans we have sprayed, with cultivation starting and beans just coming through. The roots look good so far, very little root rot showing up (so far)

 

  • In the Richville/Reese/F’muth area most of the beans are struggling due to the rains of the past few weeks, but nothing bad enough to replant.  Post herbicide applications are taking place this week.  Of course, there are drowned out holes, but in general I would consider the beans to be much better than most had expected.  We are dealing with some root rot issues with many growers attempting to foliar feed to help them along while they generate new roots. The replants (due to seed issues) seem to look the worst, as they were replanted right before the rain started.  Any beans that were well established prior to the rain seems to have taken it pretty well.

 

  • Our crop condition is all over the board.  We have had to do some replanting due to the wet soil conditions.  Some are just starting to plant for the first time because it was too dry, and then too wet!  I took a ride out to Caseville yesterday – there are a lot of holes in fields out that way.  Post weed control application has begun.  If I had to sum it up in one word, our crop is “Fair.
  • Michigan Bean Commission | 516 South Main Street, Suite D, Frankenmuth, Michigan  48734 | 989.262.8550

Brazil Buys Pinto Beans

Brazil Buys Pinto Beans

Bom dia! (That means good morning in Portuguese!)

Como você está? (how are you?)

Dry Pinto beans is doing grrrrrreeeeeat!!! Thanks for asking! It’s been quite a season for the pinto bean lovers out there, things started off a bit rocky with prices scrubbing the floor for the first few months…..But now – things are more like:

I got ants in my pants

And I need to dance

Come on

– James Brown

So there you have it in three simple lines. The pinto bean market has had it’s up’s, down’s, and up’s again. Prices are back to higher levels and growers can appreciate that. There’s bean a good steady flow of pinto bean exports into the Caribbean markets and America’s this year. Consumers kept consuming beans in all forms from traditional cooked beans to healthy familiar snacks like “Beanitos”, to tortillas made of beans or pulses. Yup, the International Year of Pulses #IYP2016 has really bean positive from every angle. Gotta love it when things go to plan and the future looks bright.

You want to know what we see when we look out there in this beautiful #beanbig world? We see people everywhere eating the foods they love (like beans) and that are good for their bodies.  We see new USA dry edible bean export markets reaching out as far as the eye can see. From Colombia to Cuba, and now coming to a theater near you in Brazil. Yes sir, things are gonna get popping like Orville Redenbacher on a Saturday night.

Brazil’s national bean is the Carioca bean, and this year bad weather disrupted the Carioca bean supply tremendously. Supply and demand physics shot Carioca prices up with the power of a rocket to the point where the average price in reals (Brazil’s currency) has reached $1.35 per pound. Anyone who knows anything about Brazil knows THIS IS the bean variety the Brazilian people can’t live without! Seriously! No joke! Not kidding! Not even playing! Ever. Got it?

Brazilians have it rough lately with a disastrous bean crop, outbreak of Zika, the Petrobras scandal,  a presidential impeachment, and preparing for the 2016 Summer Olympics in Rio. To make a long story short, Brazil now has a major shortage of Carioca beans and the Brazilian government has allowed imports from a list of bean growing countries; which includes the United States of America (Gotta love that part).

THIS IS REALLY EXCITING STUFF PEOPLE! The reason this is so exciting is the Carioca bean variety is extremely similar to USA pinto beans. The look, feel, and taste is very recognizable in both types of bean varieties. This has presented an opportunity for the US dry edible bean industry to export beans to Brazil.

If the Brazilian public accepts USA pinto bean values and accepts it’s taste versus their own national Carioca bean variety- then anything is possible. Now here’s the funny bit… The word “pinto” in Portuguese means pecker! Which might be a reason why pinto beans sales haven’t had much success in Brazil previously. Can you imagine the average Brazilian consumer in their local supermarket shopping for beans and glancing over at the newly imported USA package labeled schlong beans? You could see why the name would probably stunt sales growth.

The Brazilian government & food importers have had quite a task coming up with a new name to market pinto beans which would cross over well in Portuguese.  We do think they have managed to figure out a good name for pintos in Brazil. The new name will refer to the  capital city of the State of Sao Paulo Brazil.

Now for the real exciting part! Drum roll please!……… Dry Pinto Beans like to say thank you to Captain Nick and the dedicated pinto bean growers in North Dakota for helping us export the first containers this season of United States pinto beans from North Dakota to Brazil! Way to go everyone!!!

Brazil importers made their purchase of:

2015-2016 US#1 F.Garcia Brand Limited Harvest Slow Dark Pinto Beans 100lbs.IMG_4149F.Garcia Limited Harvest Slow Dark Pinto Beans

 

and: 2015-2016 US#1 F.Garcia Triple Cleaned Pintos BeansF.Garcia Pinto Beans Original Bag 50 LB (1)

Bottom line: From all of us here in the USA, Obrigado Brazil! (Thank you Brazil)!

Now let’s Samba!

(A Brazilian dance style)

brazil flag