Bean prices must follow the recent major grain rises at the Chicago Board of Trade, as it entails farmers seeding interest for further premiums within their cropping acres. The pressure can be perceived at the main producing regions of these grains, as recently reported in Argentina, Brazil, US and Canada, and yet coupled with the Chinese demand.
On the other hand, climate is the second pounding effect on bean price trends. The U.S. Drought Monitor (USDM) week saw deterioration in drought-related conditions on the West and the Central plains (main Bean area), of which have gotten rather dry. Several companies are willing to see rainfalls coming up and are not in the position to supply right now.
Yet about the weather, Mexico is also impacted by the dry conditions, resuming multiple years of drought, which indicates another heavy import year around the corner.
Unless something drastic changes soon the market is likely not seeing bean prices to subside.
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