Attractive pea prices
The price of yellow peas has risen steadily since harvest. The Alberta Pulse Growers publish a bi-weekly newsletter called The Pulse Market Insight. The most recent edition is by Chuck Penner of LeftField Commodity Research. Penner acknowledges that pea prices were slow to rally due to massive supplies overhanging the market. Now, yellow peas are worth $8 a bushel in many locations, an increase of $2 to $3 since harvest. Penner says the key reason is the phenomenal pace of exports. Earlier this week, there were seven ships in the Vancouver line-up scheduled to take mostly yellow peas, although some feed peas are also beginning to move to Europe. Green pea exports haven’t been quite as brisk and we’re in the unusual situation where yellow peas are actually worth more than greens. Penner says the heavy exports along with sold domestic feed pea consumption means stocks will get very tight by the end of the crop year. A key variable is the level of demand from India. He says recent price moves in that country suggest the market is relaxing a bit after a frost-related panic. Looking forward into the new crop year, lower Canadian ending stocks and the expectation of reduced seeded area should continue to support price levels. I’m Kevin Hursh.