(Resource News International) — Feed pea prices in Western Canada have been on the decline as of late, but the outlook calls for some stabilization and possibly some recovery.
“A lot of the downward pressure on feed pea bids has come as US soymeal, and subsequently, Canadian canola meal values, have dropped sharply over the past few weeks,” said David Smythe of C.B. Constantini in Vancouver.
Additional downward pressure on bids has come from edible peas being delivered to the elevator by producers for feed purposes.
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“With all the extra product for the feed market, outlets have had no choice but to lower bids in an effort to slow up deliveries,” Smythe said.
Feed pea bids in Western Canada, delivered to the elevator, based on Prairie Ag Hotwire data, currently range from $2.72 to $3.27 a bushel. This compares with values at the beginning of March which were $3.30 to $3.67 a bushel. In the middle of February, feed pea values were $3.30 to $3.86 a bushel.
Smythe said values for feed peas should begin to stabilize especially with feed barley values, basis Lethbridge, holding firm.
Some of the firmness in barley, should translate over into feed peas, he said, noting that with spring road restrictions now in place, the movement of these commodities has also begun to slow
“Feedlots in Western Canada have also wanted to start bulking up on extra supplies, as they know that once the spring road bans begin to lift, producers are going to be concentrating on spring seeding operations instead of marketing their feed peas or feed barley,” Smythe said.
He felt this should translate into a bit better bids down the road.
