| Arable
PGRO & BEPA pulse outlook
"With spring bean drilling in full swing for what is likely to be the main period for 2016, the market is looking forward to
a similar area to that harvested in 2015,” comments Roger Vickers, Chief Executive of PGRO. “That said, the area is not
accurately understood and the winter bean crop area is believed to be a little less than for crop 2015. The last two
years have seen generally good crop performances for pulses in the UK - will the coming months be similarly
conducive to yields?”
ooking at
Domestic Markets,
Chris Collings,
President of
BEPA, comments
that the bean
market seems to be well supplied
in all areas at present and this has
seen prices fall slightly in the last
3-4 weeks following a significant
rise since the New Year.
These roller coaster effects in the
market are not untypical in the
early months of each year with
market destinations opening and
closing as buyers take stock
of demand and purchase
positions. Interest in UK pulses for
all established markets remains
good for both old crop and the
coming new crop harvest.
* Old crop requirements
for Feed Beans for the JanuaryApril period have largely been
covered. Prices have
hardly changed for some time and
remain in the range approximately
£120-130 ex depending upon the
location. Demand will typically fall
L
as cattle turn out to grass from the
end of April. It is difficult to know
how much produce has gone into
the feed market, but it is safely
judged to have at least doubled
year on year. The product is liked
by the buyers in terms of
processing and feed quality
and they are now looking to cover
requirements over the summer.
This is all good news and
providing strong assurances for
utilisation of crop 2016.
New crop prices are presently
similar to old, but with wheat still
lingering at around £105/t,
feed beans are offered a premium
of approximately £25/t. Trade of
both old and new crop is taking
place.
* The market for Human
Consumption Beans appears to be
temporarily oversupplied from all
destinations with a 17,000t cargo
from Australia en route to the
Egyptian market. Values have
slipped slightly as a result, falling
from their recent highs of £160/t ex
to current levels of £145/t ex.
18 | Farming Monthly | April 2016
The produce from Lithuania has
been well received, being bruchidfree and was generally of lower
price for early movement. In Egypt,
buyers will be looking to source
from Lithuania ex 2016 with
enthusiasm. Of course, this origin
is new as suppliers to the market
and has yet to build a reputation
for consistency and reliability - a
position that UK trade has enjoyed
for many years and the reason
why UK beans remain in the
leading position. Egyptian currenc
y was recently devalued by over
12% and currency availability is
still an issue, though falls in GBP
values have continued to assist
exporters. Australian crop 2015
was reported at circa 320,000t, up
12% on 2014. The area, however,
increased by 75% reflecting
weather related cropping
issues. The Sudanese market will
reopen in June for containerised
shipments from May, which may
provide late opportunities for
remaining old crop of the right
quality.
Quality remains the
watchword for human
consumption beans. Samples with
a good enough visual appearance
are now quite hard to source, with
colour darkening in storage, an
issue that growers need to
constantly bear in mind. The
outlook for 2 M