Peas prices started to see a little bit of strength in the month of April on some better demand prospects.
While the issue of the Indian government interfering in the pulse markets continues, the idea that China is stepping into to fill the void has been positive. Part of the reason is that the Chinese are looking for feedstuffs and Canadian peas could help fill the void if China puts tariffs on US soybeans.
More forward-looking, we’ve looked deeply into the prospect of India’s monsoon rains this year, and how it could impact peas prices.
While on other pulse markets such as chickpeas or lentils prices edged lower in April, in comparison, peas prices rallied. This happened not only in Canada but also in India.
As we started the month of April, the market was still digesting the USDA’s Prospective Plantings report which showed that American farmers will plant 908,000 acres of peas this spring. That’s down 20% year-over-year and would be bullish in any other year, except since we know that international demand is a bit subdued, it’s more neutral than anything.
At the end of the month, StatsCan said that Canadian farmers will plant 3.87 million acres of peas in Canada in 2018/19. This is down roughly 5% year over year but it was above pre-report expectations, and thus, a bit bearish for peas prices.
Here are a few other factors that we looked at this month that impacted chickpeas prices:
- Peas are now going in your pasta;
- Manitoba peas buck the trend;
- And what in the world is going on with the US trade policy?
Be sure to sign up for your free 3-week trial at GrainCents as this month could be the most impactful for how and when you price your peas for the rest of 2017/18 old crop, as well as a significant portion of your 2018/19 new crop production.