GRAIN MARKET UPDATES
Bean exports strong
u
and Brazil leading to lower values from those origins, undercutting
U.S .values.
By Paul Dubravec
Advance Trading, Inc.
SDA’s planting progress report released May 28 pegged
U.S. bean acreage at 44 percent versus the 61 percent
average. With weather pushing back progress on corn,
producers have not been able to cut losses and get beans planted in
a timely manner. Though there has been some talk about an acreage loss in beans, it seems far too early to count out what is left to be
planted, rather we may see one million to three million more acres of
bean acres from corn.
Export business earlier this calendar year was strong and we are
still seeing China come to the table for some old, but now primarily
new, crop beans. This week we did see them cancel some old crop
contracts, though these were just rolled to new crop. Year-to-date
we have shipped 10 percent more beans this year than last, yet our
unshipped sales are down 63 percent from this time last year. In fact,
in the last 30 days, export sales have been averaging levels that are
even with modern-day lows last seen in the spring of 1994. It’s all
about South American bean production — big crops in Argentina
Domestically, the bean crush margins are running in the $0.80
to $1.40 per bushel margin despite the extreme tightness in bean
supplies. The cash markets in beans have softened over the last two
weeks but, like corn, are still well above normal values seen during
this time of year. The processor market will continue to pay whatever
it takes to get beans as long as margins continue to maintain current
levels. Demand for meal both domestically and for export remains
strong and is helping keep margins strong as the demand for meal
supports meal values.
Like corn, the bean crop will be pushed back in terms of maturity.
We will likely have a later harvested crop than what we have been
spoiled with the past few years. That will only cause more concern
for weather through the heat of the summer and what demand does
to flat price in the coming months. USDA will release the two reports
in June — one for crop production, the other will be an acreage
update and supply demand update. Like corn, between weather and
government reports we are in for a volatile summer and early fall.
Wiese Crop Insurance
410 N. Mechanic • El Campo, TX 77437
979.234.3331 • 800.942.9722 • [email protected] • www.wiesecropinsurance.com
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