Improved feed pea cash bids seen as short-lived

(Resource News International) — Feed pea prices in Western Canada have been slowly improving over the past few weeks, but the uptrend is not seen continuing for very long.

“There has definitely been an improvement in the value of feed peas at the cash level, but most of that increase has been linked to the fact that U.S. soymeal values have also seen some strength,” said Fred Greig, pea chair of ther Manitoba Pulse Growers Association.

Strength in the cash bids was also attributed to the fact that producers are not willing sellers at this time.

“Most producers are still repairing equipment from the harvest and preparing to store them for the winter,” Greig said, explaining the lack of marketing ongoing at this time.

“In talking with some producers with feed peas, there is not likely to be any significant movement until sometime in the near year and only if prices for the commodity improve from current levels,” he said, noting that the $5 a bushel level in Manitoba and Saskatchewan would probably be enough to entice some producer offerings.

However, significant quantities of cheaper alternative feed sources will continue to limit the upside price potential, said Greig, who farms at Reston, Man., about 40 km southwest of Virden.

Prices for feed peas delivered to the elevator in Manitoba and Saskatchewan currently range from $3.54 to $4.55 a bushel and in Alberta from $4 to $5.85, according to Prairie Ag Hotwire data.

At the end of November, feed pea prices in Manitoba and Saskatchewan ranged from $3.54 to $4.30 while in Alberta values were $4 to $5.85.

At the end of October, feed pea prices in Manitoba and Saskatchewan were $3.30 to $3.67 while in Alberta they were $4.49 to $5.20.

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