Peas Quiet For Holiday Period
VANCOUVER - Dec 24/11 - SNS -- International field pea markets were seasonally quiet during the past week, with traders in many countries already starting Christmas celebrations.
Market participants still at their desks at week's end were pleased by the news India's farmers have had trouble seeding this year's rabi or winter season pulse crops. This has seen the amount of land so far planted to gram or chickpeas drop below year earlier levels, contributing to an overall decline in pulse area.
The net result is that while India is once again expected to produce an above crop, it will be down from last year, suggesting that import demand will improve when domestic prices rise above parity prices for imported product. Volatility in currency markets is making it harder for this to occur, while fundamental shortages of field peas suggest imports cannot increase significantly during the first half of 2012.
India Rabi Seeding Update
India - Rabi Seeding Progress to December 23, 2011
(hectares planted)
2010-11 2011-12 Change
Gram 8,968,000 8,578,000 -4.3%
Other Pulses 4,553,000 4,840,000 6.3%
Total Pulses 13,521,000 13,418,000 -0.8%
Wheat 26,493,000 26,550,000 0.2%
Rice 226,000 205,000 -9.3%
Other Grains 5,790,000 5,377,000 -7.1%
Total Grain 32,509,000 32,132,000 -1.2%
Oilseeds
Rapeseed/Mustard 6,775,000 6,383,000 -5.8%
Sunflower 417,000 338,000 -18.9%
Groundnut 355,000 387,000 9.0%
Other 764,000 683,000 -10.6%
Total Oilseeds 8,311,000 7,791,000 -6.3%
India Tender Update
PEC Limited will tender December 27 to buy 2,000 MT of Australian origin desi chickpeas for January shipment to Mumbai, as well as 2,000 MT each of Urad SQ and Urad FAQ for shipment to Chennai.
India Food Inflation Update
India's food inflation rate for the week ending December 10 declined by 0.5 percent to 191.0 (Provisional) from 191.9 (Provisional) for the previous week due to lower prices of fruits & vegetables and condiments & spices (2% each) and ragi, tea and rice (1% each). However, the prices of jowar, gram and masur (2% each) and fish-inland, poultry chicken and fish-marine (1% each) moved up.
The pulse index stood at 213.6 points up 14.22% on the year. Pulse price inflation has averaged -3.16% during the past year, while overall food inflation has averaged 10.06%.
Canadian Export Update
During the past week, exporters in Vancouver finished loading the Shi Dai 2 with 66,000 MT of peas.
Field pea exporters in Vancouver have nominated the Thor Enterprise to load 27,996 MT; and the Fu Hua to load 11,000 MT.
Actual and prospective loadings in December total 185,066 MT and prospective loadings for January total 11,000 MT, compared to 135,104 MT in November. This lifts season to date actual and prospective loadings to 1,020,176 MT; compared to 1,354,256 MT the six months of the 2010-11 marketing year; 809,088 MT in 2009-10; 858,708 MT in 2008-09; 1,038,415 MT in 2007-08; 871.714 MT in 2006-07; 1,034,660 MT in 2005-06; and 378,265 in 2004-05.
During the 2009-10 marketing year, exporters moved 1,630,434 MT of peas through reporting terminals. This compares to 1,630,434 MT during the 2010-11 marketing year; 1,866,345 MT in 2008-09; 1,475,403 MT in 2007-08; 1,394,356 MT in 2006-07; 1,774,602 MT in 2005-06; 942,121 MT in 2004-05; and 809,643 MT in 2003-04.
CGC Stock Update
The Canadian Grain Commission (CGC) reports 34,800 MT of peas were exported through reporting terminals between December 11 and December 18. A total of 938,900 MT of peas have been exported through CGC licensed terminals so far during the 2011-12 marketing year, compared to 1,081,000 the previous marketing year.
There are 197,400 MT of peas in all positions, including: 93,700 MT of field peas in primary elevators; 300 MT in process elevators; 78,500 MT at Vancouver; none at Churchill; none at Prince Rupert; 300 MT at Thunder Bay; none in the lower St. Lawrence; and 24,600 MT in transit by rail to west coast ports.
For the field peas in primary elevators, 6,200 MT are located in Manitoba; 58,500 MT in Saskatchewan; 27,500 MT in Alberta; and 1,500 MT in British Columbia. Another 300 MT of peas are in storage in process elevators in Saskatchewan. Also, 3,700 MT of peas are in condo storage in Saskatchewan and 100 MT in Alberta.
The grade breakdown for the peas instore Vancouver is no No 1 Canada; 19,500 MT of No 2 Canada; 47,900 MT No 3 Canada; 4,900 MT Canada feed; and 6,200 MT of other grades. At Churchill there are no peas. At Thunder Bay there are no No 1 Canada; no No 2 Canada; no No 3 Canada; 300 MT of Canada Feed; and none of other grades. There are no peas in Lower St. Lawrence terminals.
Field Pea U.S. Loan Program
The USDA's Commodity Credit Corporation office sets prices to be used by country offices for determining marketing loan repayment rates. The price for 2011 crop field peas was unchanged at U.S. $15.17 per 100 pounds in the west and $14.04 cwt for product in the east.
The price for 2010 crop field peas was unchanged at U.S. $11.28 per 100 pounds in the west and $10.15 cwt for product in the east.
At this level there is no Loan Deficiency Payment (LDP) for peas in the east (Montana, North Dakota, etc) based on a loan rate of $5.20 cwt for feed peas. The 2011-12 loan rate is $5.13 cwt.
At this level there is no Loan Deficiency Payment (LDP) for peas in the west (Washington, Idaho, Oregon) based on a loan rate of $6.33 cwt for feed peas. The 2011-12 loan rate is $6.57 cwt.
As of December 23, growers have placed 8.4896 million pounds of 2011 crop peas under loan; compared to 42.7267 million pounds in 2010-11; 73.9487 million pounds in 2009-10; 37.9916 million pounds in 2008-09; and 43.6603 million pounds in 2007-08.
Of the 2011-12 crop loans, 2.3201 million pounds have been repaid. Growers in Montana have placed 4.2968 million pounds under loan; compared to 4.1928 million pounds in North Dakota.
Growers have requested no LDPs on 2011 crop peas. In 2010-11, 2009-10, 2008-09 and 2007-08 they requested no LDPs, compared to $322,162 in on 15.688 million pounds in 2006-07. In 2005-06, they requested $7,321,730 in LDPs covering 309.66 million pounds.
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