Pulse growers should react to the current strong export demand for human consumption beans before the Australian crop enters the market early in the New Year, advises Nidera.
A bumper 2013 UK bean crop, with excellent quality, means that although the premium for human consumption beans is lower than in previous seasons, the product is in demand and prices are firm, reports Nidera’s pulse trader Arron Mayhew.
“In general, UK beans are a good size and colour, with very low levels of bruchid beetle damage,” he says. “As a result, some 75% of the crop meets the human consumption specification.”
That means around 330,000 tonnes could be exported from the UK, he calculates.
“Egypt has a demand for 600,000 tonnes each year, of which 350,000 tonnes are usually supplied by the UK and France.
“The remainder is met by Australia from January onwards, as well as Egypt’s domestic production of 50,000 tonnes.”
So far this year, Egyptian buyers have shown a preference for UK beans, Arron Mayhew says.
“French crops were hit by the hot summer and have a smaller grain size, poorer visual appearance and more bruchid damage. But better samples are competing with UK beans for the pre-Christmas trade.”
As a result of increased availability, it’s inevitable that some good quality beans will have to go as feed, he warns.
“When the Australian crop hits the market, there will be competition and export activity will be reduced. So our advice to growers is to make the most of this window and secure a good price plus small premium while it’s on offer.”
A feed price of around £230/tonne reflects the shortage of feed beans in the market, as growers hold out for premiums from their better quality crops, he concludes.
“Prices of feed beans remain at a healthy premium to feed wheat. So there’s another good reason to sell beans before Christmas.”
