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December 16, 2005 Market Advisor: Navy and Pinto Bean Crops Largest in Several Years
The navy and pinto bean crops were much larger than a year ago and the largest since 2002, according to a USDA report released Dec. 9. As a result, prices for both crops are sharply below year ago levels. As of Dec. 6, the North Dakota price was $18 per hundredweight (cwt) for navies (down 25 percent) and $14 per cwt for pinto beans (down 50 percent). Navy bean production totaled 3.95 million cwt versus 5.39 million in 2002. Pinto bean production totaled 13.11 million cwt versus 13.19 million in 2002. For both crops, 2005 production was up appreciably from the past two years, especially from last year. The situation was similar for 2002 production relative to 2001 and 2000. Given the similarities between 2002 and 2005 production, especially for pinto beans, an examination of 2002 marketing year prices may be worthwhile. The prices analyzed are monthly averages for North Dakota. The marketing year for navy and pinto beans begins in September. Navy bean prices in 2002 averaged $23 per cwt during February and then declined to $12.40 by December. The price went on to establish a marketing year low in February 2003 of $9.52. By September, the price had recovered to $17. The navy bean crop was quite a bit larger in 2002 (36 percent) than in 2005, so it is not so likely that the navy price will deteriorate from the $18 December price and could improve by spring, depending in large part on exports. At least the navy bean price has a better chance of improving than the pinto bean price. Pinto bean prices in 2002 peaked at $30.70 per cwt during April and then declined to $13.90 by December. The price made a marketing year low in March 2003 of $12.30. By September, the price had recovered to $14.90. In 2005, the price peaked in February at a similar price of $30.30 and the December prices were nearly identical. For pinto beans, the two years are close enough in production and price that further price weakness into 2006 cannot be ruled out. Furthermore, price recovery is likely to be much more anemic for pinto beans than for navies. Keep in mind that exports, acres and yields ultimately will determine what happens to prices in 2006. Navy bean planted acres totaled 233,400 in 2005, up 26 percent from 2004 and up 48 percent from 2003. Pinto bean planted acres totaled 817,800 in 2005, also up 26 percent from 2004 and up 23 percent from 2003. Very good yields were recorded for both crops in 2005. The navy bean yield was 1,784 pounds per acre versus 1,318 in 2004 and 1,666 in 2003. The pinto bean yield was 1,719 in 2005 versus 1,362 in 2004 and 1,635 in 2003. ### Source:
George Flaskerud, (701) 231-7377, gflasker@ndsuext.nodak.edu |
Market Advisor: |
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North Dakota State University |
