Glacier FarmMedia – Tightening supplies and solid demand continue to keep pea bids well supported in Western Canada, although uncertainty over whether that demand will continue was keeping some caution in the market as attention turns to the upcoming crop.
Spot bids for green peas have topped C$20 per bushel in parts of the Prairies, while yellow pea pricing can be found in the C$14 per bushel area, according to Prairie Ag Hotwire data.
While prices may be high, there’s very few green peas trading at current levels, according to broker Levon Sargsyan of Johnston’s Grain. He said supplies were tight, while drought projections also have farmers anticipating higher prices down the road as they begin spring seeding.
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For yellow peas, a pause in India’s import tariffs accounted for solid export movement in recent months. The end of the duty-free movement has been pushed back a few times already, but tariffs are set to go back into effect at the end of June. Farmers are optimistic for another extension, but it remains to be seen what India will do.
“Once there is a bit more certainty with the weather and the politics (in India) things will stabilize one way or the other,” said Sargsyan on the market direction.
New crop pricing has not seen the same strength as old crop, but a move by India to extend duty free pea movement beyond the end of June would push that demand into new crop territory, which would likely support yellow pea prices.
If the pea market holds steady over the next month, Sargsyan expected there could be a shift towards more green pea acres this year – although yellow peas will continue to account for the bulk of the peas grown in Western Canada.
—Phil Franz-Warkentin is an associate editor/analyst with MarketsFarm in Winnipeg.
