CNS Canada –– Canada’s green and yellow pea markets typically move together, as each market pulls the other up or down, but they seem to have broken out of that cycle, a Victoria-based trader says.
Green peas prices have edged lower on a lack of demand, while yellow peas have gained ground.
The last time yellow peas held a premium over green peas for an entire crop year was 2006-07, according to a government report.
“We usually get the green peas going and pulling the yellow peas with them, or the yellow peas going and pulling the green peas with them, but there seems to be no correlation between the two,” said David Newman of pulse trading and processing firm Commodious Trading.
Yellow pea prices are moving higher on short-supply and strong demand from India, he said, adding that his green pea sales have been moving behind last year’s pace.
“It seems like when things are really rolling China is buying green peas, and we just haven’t seen it this year.”
Agriculture and Agri-Food Canada said in its most recent principal field crop report that pea exports will likely hit 2.9 million tonnes in the 2015-16 marketing year.
That compares with three million tonnes the year prior, but the data doesn’t distinguish green pea sales from yellow pea sales.
Newman called the current lack of demand for green peas shocking.
“With the rest of the prices of commodities being so soft, there’s no interest in that item with a fairly reasonable price. It makes no sense,” he said. “But it’s the way it is.”
Delivered elevator green pea prices are sitting at $8-$8.50 per bushel, and yellow peas are bringing producers $8.50-$10 per bushel, according to Prairie Ag Hotwire.
— Jade Markus writes for Commodity News Service Canada, a Winnipeg company specializing in grain and commodity market reporting. Follow her at @jade_markus on Twitter.