December 13, 2001

Market Advisor: USDA Report Positive for Edible Beans and Soybeans

By George Flaskerud, Crops Economist
NDSU Extension Service

USDA reports indicate upside potential for prices of navy beans, pinto beans and soybeans but the opposite for wheat and corn. USDA released a supply and demand report and crop production report on December 11.

Navy and pinto bean prices should continue to show strength. According to an October USDA report, dry edible bean prices, in the aggregate, were expected to rise through mid-2002.

Navy bean production was down 52 percent from a year ago. The biggest drop occurred in Michigan where production decreased from 1.8 million hundredweight to 170 thousand hundredweight. Drought conditions severely reduced the Michigan crop. In North Dakota, production decreased from 1.6 million hundredweight to 1.3 million. North Dakota was the top producing state this year.

Pinto bean production was down 20 percent from a year ago. Production in North Dakota decreased from 5.3 million hundredweight to 4.1 million. North Dakota was also the largest producing state of pinto beans by a considerable margin.

USDA increased ending stocks for wheat by 35 million bushels from last month due to decreased food use and export projections. USDA did not change the corn balance sheet from last month, which was negative because the trade was expecting USDA to show increased use for ethanol and exports. USDA reduced soybean ending stocks by 25 million bushels from last month as a result of increased crush and export projections.

A seasonal average farm price of $2.75 to $2.95 was projected for wheat, $1.85 to $2.15 for corn, and $4.00 to $4.80 for soybeans. Relative to last month, the price ranges for wheat and corn were tightened by 5 cents at both ends. In contrast, the price range for soybeans was increased by 10 cents at both ends.

The barley and oats balance sheets remained unchanged from a month ago. The projected seasonal average barley price went from $2.10-$2.40 to $2.15-$2.35, and for oats, it went from $1.20-$1.40 to $1.30-$1.40.

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Source: George Flaskerud, (701) 231-7377, gflasker@ndsuext.nodak.edu
Editor: Tom Jirik, (701) 231-9629, tjirik@ndsuext.nodak.edu