January 2012 Bean and Rice Update

Beans: 2012 Crop is the major topic of discussion. Competing grain markets have decreased slightly and dry edible beans look more competitive. Although it is still early to predict what the growers will do, the consensus appears they will grow beans only if they can get a contract that is equal to or better than grain and soybeans. With little or no carryover on most varieties, the weather will also play a major factor this spring.

Rice: The overall quality of the rice production is rated good to excellent. Compared to the 2010 crop, milling

yields are slightly above normal. Competing markets bear watching on the rice market also as producers look

at other alternatives.

Blackeyes: Prices continue firm and import values are also rising. No pricing relief is expected until 2012 crop beans are available.

Black Beans: News from Mexico has not improved. The Mexican government has agreed to take beans from any sources available including China. The domestic market is holding steady and dealers are offering 2011 and 2012 crop into the Mexican market. Time will tell if the less expensive Chinese product will have an impact on overall prices or if the need far out strips

availability.

Baby Limas: Values remain steady.

Great Northerns: Slightly higher prices reported with growers holding for higher prices.

Green Split Peas: No change.

Lentils: Unchanged.

Large Limas: Prices are steady and are expected to maintain current levels.

Light Red Kidneys: Slightly higher values reported with a few quality issues surfacing in the Midwest.

Navy Beans: Unchanged.

Pink Beans: High values continue to be the norm with no pricing relief expected.

Pintos: Mexican buyers have been very active and are purchasing as much product as they can get to ship within the next 90 days. As predicted, prices have risen to reflect the increased demand. Growers continue to hold for higher prices and with nine months left to go in the marketing year and no carryover, they hold the cards.

Small Reds: No change.

Yellow Popcorn: Values continue to increase as the full extent of decreased production is reported.

Long Grain Rice: Market continues to soften slightly as no unexpected export sales have materialized. Although the US crop is at least 25% down from the previous year, the world production is one of the highest on record. Processors are very concerned that unless the values to producers stabilize or increase, the US production for the 2012 crop could be down even more this coming season.

Medium Grain Rice: Prices remain relatively stable. As with the long grain crop, there has been no unexpected export activity.