MarketsFarm – Solid demand and tighter supplies have seen green pea bids regain a premium over yellow peas in Western Canada, although the market for both varieties remains solid overall.
Green peas historically trade at premium to yellow peas due to higher quality specs and concerns over bleaching, but increased domestic demand for yellow peas from protein extraction plants along with drought issues last year led to an inversion in that relationship.
At this time a year ago, top end yellow pea bids were trading at a C$2 per bushel premium over green peas, according to Prairie Ag Hotwire data. Yellow peas were still holding a premium as recently as July 2022, but since the start of the 2022/23 crop year in August the top end bids for the two peas have moved back into their more traditional relationship. Currently, green pea bids are topping out at C$14 per bushel, while the highest yellow pea bids are closer to C$13.
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Canada grew 3.59 million tonnes of peas in 2022, which was up from 2.26 million tonnes the previous year, according to Statistics Canada data. Yellow peas made up roughly 80 per cent of the total production in 2022, with the remainder consisting of green peas and other varieties, according to an emailed note from Agriculture and Agri-Food Canada (AAFC).
Total pea exports are forecast to increase to 2.70 million tonnes in 2022/23, from 1.91 million, while domestic usage should rise to 701,000 tonnes from 551,000, according to the latest Agriculture and Agri-Food Canada supply/demand estimates.
