BEPA Pulse Market Update
2011 Yield is the great unknown for all commodities! The global food debate continues to grab headlines with every indication that commodity prices will remain firm, if volatile.
Eastern Europe claims good crops as Ukraine and Russia re-enter the wheat markets. In contrast, North America is less bullish after cool, wet weather has delayed sowing and land remains saturated. In Canada, the areas worst affected by rain are those most intensively growing peas. Stats Canada reports were already predicting dry pea area reduction of 20%, with reduction in blue peas even higher, and a supply that will decrease for the third consecutive year - so prices will remain high.
Recent UK rainfall has eased fears of major pulse crop problem
s here - although crops in the west and north have fared much better than those in the east. Yields nationally will be very variable, with a lower average than normal.
Notwithstanding their subsidy, France has seen a marked reduction in acreages of both peas and beans with 40-50% decreases reported. Also their drought has been more severe than ours, with little to no rain in three months and, unlike the UK, no recent relief. Like us, their crops are two weeks earlier than average.
N fertiliser prices too remain very bullish for the autumn – another good reason to plant winter beans.
Feed Beans
Shortage of old crop and higher export demand means very little feed bean trade is available, and feed quality is finding export homes for Human Consumption as well. Prices hover around £200 on farm at about £40 premium to volatile wheat.
Human Consumption Beans
Egyptian buyers are active with Ramadan a mere six weeks away, and recent local harvest only some 70,000 tonnes. Australian "Fiesta" sellers are cashing in at around £260/tonne equivalent (delivered) as UK/French old crop stocks dwindle and quality standards are lowered. This is a £30-50 premium over feed.
French exports have dried up for the time being as their new crop is awaited some two weeks earlier than usual.
New crop offers are over £225 ex-farm, but no sellers are likely for some months. Some growers are keeping old crop to underpin new crop yields. This is truly shaping up to be a ’seat-of-the-pants’ sales season with demand certainly outstripping supply.
Marrowfats
Interest is awakening in the Far East, but yields will be down after the dry weather in Essex, Kent, and Norfolk. Recent rains will help. Pea moth is a risk this year and PGRO has already issued some warnings on trap catches.
Blue Peas
There is little to add from the last report, but speculation on peas will be rife, and the effects of the 3/4th May frost on low-lying areas from the Fens up into Lincolnshire are making matters worse – including PGRO trials at Thorney.
White Peas
Small quantities of French crop are still going up to Norway.
