(Resource News International) — Feed pea prices in Western Canada have come down over the past month and could remain under pressure, given the larger percentage of the pea crop grading as feed and the lack of fresh demand.
While pea yields have been reasonably good this year, the quality has been questionable.
David Smythe, a commodity trader with CB Constantini in Vancouver, said rains that fell in August caused bleaching to 20-50 per cent of the green peas coming off the fields. As a result, there are more peas being dumped into the feed market.
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Prices for feed peas have come down by a dollar per bushel over the past three or four weeks, Smythe said.
Prices quoted by Prairie Ag Hotwire show feed peas, delivered to the elevator, at $3 to $3.67 per bushel.
At one point the feed peas were trading at a premium to the edibles, but when the bottom fell out of the edible market, the feed peas quickly followed, said Smythe.
Most exporters have reasonable business on the books for September/October, and will start pricing again after they work through their nearby commitments, he said.
Total Canadian pea production in 2009-10 was recently estimated by Statistics Canada at 3.1 million tonnes, which compares with 3.5 million the previous year.
While a smaller production number would usually lead to an increase in prices, Smythe noted large ending stocks from the previous year — nearly half a million tonnes — would limit any upside potential.
