Pulse weekly outlook: Slow demand pulls down pea prices

MarketsFarm — Slow demand has been behind the declines in green and yellow peas, according to Marcos Mosnaim of Mercais Commodities in Toronto.

Over the last week, prices for western Canadian green peas have lost 30 cents per bushel at $14.50-$16.20 per bushel delivered, according to Prairie Ag Hotwire. Those for yellow peas have dropped back 50 cents, at $16.50-$18/bu.

The time of year is one factor, Mosnaim noted, as markets are often slow from mid-December to mid-January as people are on holidays.

Also, he said, sales previously made were behind in being exported. Supply chain issues have been an ongoing problem due to the COVID-19 pandemic, further exacerbated by a shortage of containers in which most pulses are shipped.

“How can you have new sales when your old sales are not gone yet? Generally speaking, you will have slow demand until whatever is in the books is shipped,” he said.

“But every day that passes, you’re closer to new crop and new-crop pricing,” he warned, stressing that buyers are becoming less interested in the current crop.

If an exporter were to buy from a farmer now, it’s a week or more before there’s an actual delivery, Mosnaim said. Then it will be the end of February to early March before it’s at the port and arriving at its destination around late March.

— Glen Hallick reports for MarketsFarm from Winnipeg.