Peas Start 2013 Unchanged to Firmer
VANCOUVER - Jan 4/13 - SNS -- International field pea markets unchanged to firmer as January got underway.
Green peas extended their bull run as the month got underway, with prices advancing as stocks available from net exporting nations remained behind the needs of net importing nations.
There were reports that Russia is actively seeking whole and split green peas; while Brazil continues to buy all available stocks from Argentina.
Rabi Seeding Pace Improves
Pulse area in India remains behind last year, but almost identical to the recent average for the first week of January.
India's Agriculture Department reports that as of January 4, farmers had planted 13.605 million hectares of pulses, down from 14.066 million at this time last year. As a result the gap between this and last year dropped from 602,000 to 451,000 hectares. Total area is now just ahead of the recent average for this time of year of 13.597 million hectares.
By this time, farmers in India have normally planted 94% of their rabi season pulses and 93% of all crops.
Within the pulse category, total land in desi type chickpeas or gram was pegged at 8.94 million hectares, up from 8.637 million at this time last year. Total chickpea production was expected to be up as farmers in India expand land in both desi and kabuli type in response to last year's bullish domestic and international market conditions for both crops.
Rising desi chickpea output could have an impact on field pea markets during the coming calendar year. As prices paid to farmers ease, interest in importing yellow peas could diminish, potentially resulting in downward price pressure in front of the 2013 harvest.
CGC Stock Update
The Canadian Grain Commission (CGC) reports 66,100 MT of peas were exported through reporting terminals between December 9 and December 16. So far this marketing year, 766,600 MT have been exported through CGC licensed terminals, compared to 938,900 MT during the same period last season.
During the 2011-12 marketing year, a total of 1,605,500 MT of peas were exported through CGC licensed terminals, compared to 2,456,100 the previous marketing year.
There are 181,600 MT of peas in all positions, including: 121,000 MT of field peas in primary elevators; 600 MT in process elevators; 25,700 MT at Vancouver; none at Churchill; none at Prince Rupert; 8,300 MT at Thunder Bay; none in the lower St. Lawrence; 200 MT in transit to east coast ports; and 25,800 MT in transit by rail to west coast ports.
For the field peas in primary elevators, 9,100 MT are located in Manitoba; 72,900 MT in Saskatchewan; 38,800 MT in Alberta; and 200 MT in British Columbia. Another 600 MT of peas are in storage in process elevators in Saskatchewan. Also, 5,100 MT of peas are in condo storage in Saskatchewan and 700 MT in Alberta.
The grade breakdown for the peas instore Vancouver is no No 1 Canada; 9,800 MT No 2 Canada; 15,900 MT No 3 Canada; no Canada feed; and none of other grades. At Churchill there are no peas. At Thunder Bay there are 100 MT No 1 Canada; 5,100 MT No 2 Canada; 300 MT No 3 Canada; 2,800 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 2012 crop field peas was up 18 cents at U.S. $17.20 per 100 pounds in the west and at $16.34 cwt for product in the east.
At this level there is no Loan Deficiency Payment (LDP) for peas. The loan rate in the east (Montana, North Dakota, etc) is $5.19 cwt, compared to a loan rate in the west (Washington, Idaho, Oregon) of $6.05 cwt.
As of January 4, growers in the United States have placed 16.6693 million pounds of peas under loan. Of the total, Idaho growers have placed 311,372 pounds under loan, compared to 9.61 million pounds in Montana; and 6.748 million pounds in North Dakota. Last season, U.S. farmers placed 9.0166 million pounds of peas under loan; compared to 42.7267 million pounds in 2010-11; 73.9487 million pounds in 2009-10; and 37.9916 million pounds in 2008-09.
Of the 2012-13 crop loans, 2.0564 million pounds have been repaid.
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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