MarketsFarm — With increased export competition, pea prices in Western Canada have slipped back, according to Levon Sargsyan of Johnston Grains in Calgary.
“We are hearing that China slowed their imports down from Canada, which is driving the current decrease in prices,” Sargsyan said. “They have increased their imports from countries like Russia, which is increasing competition for our export market.”
He said yellow peas since April have fluctuated between $9.50-$11 per bushel free on board in Saskatchewan and Manitoba, adding that when export demand was strong, that pushed prices higher.
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It’s the same story for green peas, as Sargsyan noted they have $16-$16.50/bu. f.o.b., being somewhat resilient as compared to yellow peas.
“The increased export competition will have an impact on long-term production. We will have to watch the geopolitical dynamics unfold to create long-term clarity,” he said.
The latest numbers from the Canadian Grain Commission listed pea exports 15 weeks into the 2023-24 marketing year were 760,500 tonnes, down slightly from 775,800 the same time last year. Domestic usage fell back as well, with 54,800 tonnes so far this year compared to 88,700 a year ago.
In terms of specific countries, the CGC cited total pea exports at 499,100 as of September. Of that 406,400 tonnes were shipped to China, which was more than the 342,300 tonnes a year ago. Canada’s other foreign purchasers in 2023-24 have been Bangladesh at 57,800 tonnes, Mexico at 25,000 and the United States at 9,900.
Prairie Ag Hotwire found that green peas across Western Canada were $16-$16.75/bu. f.o.b., slipping 50 cents over the last week. Meanwhile, yellow pea prices gave up $1.30 during the same time, at $10-$10.75/bu.
As for feed prices, they were unchanged at $9.75-$10.25/bu. f.o.b. in Saskatchewan and Manitoba, and $11-$11.70 delivered in Alberta.
— Glen Hallick reports for MarketsFarm from Winnipeg.
