Pea prices in the month of August 2018 continued to be pressured by the North American harvest and ongoing trade troubles.
Considering some of the trade-policy setting that’s coming out of the White House these days, what the Indian government did last week was astonishing.
On Wednesday, the Indian government shared that they were ending the restriction of pea imports. While this doesn’t mean that the import tax was lifted, the market obviously interpreted this a good news and we saw a slight improvement in yellow pea prices to $7 and green pea prices to $9 on the FarmLead Marketplace, notably in Alberta and SW Saskatchewan.
Literally, less than 24 hours later, on Thursday, India’s import ban was back on.
Without any explanation.
Farmers and grain traders from Canada to the US to the Ukraine were left wondering if there’s any credibility left in the Indian government policy-setting process.
Thus, those aforementioned stronger bids fell back to levels seen earlier in the week, around $6.35 CAD for yellows and $8.50 for greens.
This in mind, as we’ve now flipped the calendar into September, let’s take a quick peek at how pea prices performed in the past month.
Looking at average prices in Saskatchewan, yellow pea prices were 2% lower than where July ended, and 28% lower than at this time a year ago.
Comparably, green peas values were nearly 6% lower than the end of July, while being 7% lower than how green pea prices finished August 2017.
Despite the inconsistency from India, their prices for yellow peas delivered into Mumbai are still near record highs.
For our GrainCents readers, we’re watching a variety of factors that might affect pea prices: 4 are bearish, 2 are bullish, and 2 are noise.
(If you’re not familiar with what “noise” is, then we recommend you check out our GrainCents risk management process towards peas prices.)
This month, GrainCents investigated topics such as:
To follow along with our monitoring of pea prices (and making more sense of grain markets in general), join us for your free trial at GrainCents.