Average Grower Prices Falling

VANCOUVER - Dec 12/08 -SNS -- Agriculture Canada is looking for a solid, general; decline in average grower bid levels for specialty crops and pulses marketed in Canada this year.

The declines were recorded in the department's regularly monthly update on specialty crops market. It said, " Average prices, over all types, grades and markets, are forecast to decrease from 2007-08 for dry peas, chickpeas and canary seed and increase for lentils, dry beans, mustard and sunflower seed. The main factors to watch are: the volatility of commodity markets, the impacts of tighter worldwide credit conditions, ocean freight rates, the Canada-US dollar exchange rate and the crop conditions on the Indian subcontinent and in the Middle East."

For 2008, total production of pulse and special crops (P&SC) in Canada increased by 16% to 5.3 million metric tons (MT), based on Statistics Canada November production estimates. Compared to 2007, average yields were higher for all pulses and specialty crops. Crop abandonment was generally higher than for 2007, but lower than the five-year average. Indications are that quality was generally similar to, or lower than, 2007.

Total supply increased by only 11% because the increase in production was partially offset by lower carry-in stocks. Total exports of P&SC are forecast to fall slightly to 3.6 million MT. Total carry-out stocks are expected to more than double to 1.2 million MT. Carry-out stocks are expected to rise for all special crops, except for chickpeas and canary seed.