Canada Markets

Yellow Pea Bids Bears Watching

Cliff Jamieson
By  Cliff Jamieson , Canadian Grains Analyst
Connect with Cliff:
This chart shows the trend for No. 2 CW yellow peas delivered to elevators/processors in southeast Saskatchewan this crop year. This was followed by further weakness on June 3 and bears watching. (DTN graphic by Cliff Jamieson)

As seen on the attached chart, the No. 2 yellow pea bid delivered into southeast Saskatchewan locations has moved from close to $230/metric ton in early March to a high of $278.32/mt as of May 25, according to price data. While not shown, the other eight regions of the Prairies monitored also reached highs on the same day, ranging from $259.70/mt in eastern Manitoba to $296/mt in northern Alberta.

Prices have been on the defensive since reaching the recent high, with the June 2 price data showing a one-day price drop ranging from $3/mt in southern Alberta to $10.71/mt in eastern Manitoba. For four of the nine prairie regions monitored, this was the largest or close to the largest one-day drop in prices seen this crop year. June 3 data shows a further drop of $0.86/mt to $2.18/mt seen across the nine regions, with bids ranging from $248.55/mt to $283.93/bushel, with prices the highest in the western regions.

This is an unusual time of year for price weakness, with producers focused on both spring seeding and in some cases, harvesting 2019 crop. Week 42 CGC statistics shows producers delivering only 23,800 mt of dry peas into the licensed handling system during the week, down for the second straight week. Canadian dollar, strength could be a factor. In just three sessions this week, the spot Canadian dollar has gained 156 basis points or over 1.5 cents against the U.S. dollar. This brings the CAD/USD exchange to its highest level reached in over 12 weeks.

Another factor to watch is issues in trade with China. It is widely accepted that Canada may face the burden of further economic retaliation from China following the British Columbia Supreme Court ruling that the Huawei executive held by Canada will face a hearing for extradition to the U.S. As well, Canada has joined the U.S. and Australia in a press relief to condemn China for its actions in Hong Kong.

This comes at a time when major U.S. news sources are reporting that China is cancelling shipments of a number of U.S. agricultural commodities. At the same time, the USDA is reporting fresh sales being made, although the volumes continue to disappoint market watchers when volumes are compared to volumes needed to reach the Phase-One trade deal targets.

On June 3, the Canadian Grain Commission released the April Exports of Canadian Grain and Wheat Flour. The export of peas in April totaled 259,800 mt, the highest volume shipped since September, with 54% of this volume or 140,400 mt shipped to China.


DTN 360 Poll

This week's poll asks what you think the government can do to tame food inflation, as recently experienced due to the COVID-19 pandemic? Please weigh in with your thoughts on the poll on your DTN Canada Home Page.

Cliff Jamieson can be reached at

Follow him on Twitter @Cliff Jamieson


To comment, please Log In or Join our Community .