(Resource News International) — The market for both edible and feed peas is fairly quiet in Western Canada right now, as producers remain focused on finishing up the last of this year’s seeding.
The spread between old- and new-crop edible peas has narrowed in earlier than normal, meaning that some of the peas farmers were holding, in hopes of seeing higher prices, will likely find their way into feed channels instead.
Growers are still focused on getting the crop in the ground and are not a seller at any price, said David Smythe, a commodity trader with CB Constantini in Vancouver. However, when they do decide to come back to the market, they’ll find that the old- and new-crop edible peas are already trading at equal levels.
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As a result, those producers holding out for better prices for their old-crop edible peas will no longer have that option, especially on highly bleached samples. Some of those supplies will likely find their way into feed channels now, as the feed price compares favourably to edible values, Smythe said.
Current feed pea prices, for June/July delivery, were in the $3.50 per bushel range on the farm, which compares with edible market in the $4.25-$4.40 per bushel area delivered to the elevator, he said.
The feed bid was a better number, but farmers were still reluctant to let go, Smythe said. He also pointed out that the feed prices being offered a couple of months ago were actually better than the current edible bids.
Looking forward, Smythe said there were some conflicting factors at play in the pea markets, with any piece of good news being offset by bad news.
The fact that the Canadian dollar is now trading below parity with the U.S. dollar helps give Canada an advantage in the export markets, which should bode well for feed pea exports. However, that foreign exchange advantage is coming at the time of year when feed demand typically slows down, as cattle go off feed.
Expectations for large pea ending stocks in Canada should also limit any upside in the market.
However, Smythe was optimistic overall that both edible and feed peas could still move higher. India could still be in the market for edible peas, he said, and any strength there would pull up feed pea bids as well.
Weather conditions through the growing season also have the potential to lend some strength to peas, according to Smythe, who noted that there is already too much moisture in some of the pea-growing areas.
