(Resource News International) — Edible pea prices, for both yellows and greens, have been declining quite steadily in the face of poor demand and potentially larger-than-expected carryover into the 2010-11 season.
“The price weakness can be attributed mainly to the decision by India to institute a domestic anti-hoarding policy,” said Mike Jubinville, a Winnipeg market analyst with ProFarmer Canada. The anti-hoarding program forced India’s importers to empty out their bins, flooding the market with edible peas.
Prices for yellow peas at that time essentially went from $7 a bushel to $5 overnight, he said.
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Some minor strength came back into the edible pea market when it was thought that once all these peas had been used up, India’s need to import peas would resume, Jubinville said.
“While that happened to some degree the result did not benefit Canadian pea exporters,” he said.
India came back and tendered for Canadian yellow and green peas, but all the tenders were later rejected for being priced too high.
“Canada’s pea exporters were able to dictate the price at which India would make the purchases, now it is India who makes a low bid, and it’s Canadian exporters who must decide if they are going to accept or not,” Jubinville said.
As a result, Canada’s edible pea export program has slowed considerably and it appears supplies of yellows and greens will be extremely large heading into the next crop year.
Add on the prospect of large acreage to peas this spring in Western Canada, given the absence of other crop alternatives, and the supply base looks even larger, he said.
“The poor demand and the large supply prospects in turn have caused yellow pea values to drop into the $4 per bushel area,” Jubinville said.
The value for old-crop edible yellow peas, based on Prairie Ag Hotwire data, delivered to the elevator, currently ranges from $3.85 to $4.57 per bushel while green pea bids were $5.50 to $6.25.
New-crop bids for yellows, delivered to the elevator, range from $3.60 to $4.16 and for greens $5.40 to $6.
At the beginning of March, old-crop bids for yellows were $4.50 to $5 and for greens $5.50 to $6.50 a bushel. New-crop bids for yellow at the start of March were $4.50 to $4.63 and for greens, $5.60 to $6.25.
