Pulse Market Update (10.12.13)

November 2013

International overview
Canadian 2013-14 peas are now moving more freely into India and the prices of Canadian produce have held well. Occasional availability issues ex Canada has seen some beneficial trade for UK and European traders.
 
Australian Though initial Australian trades have been at a price similar level bean crop reports are generally good with export volumes now putting downward price pressure on the market as bulk shipments become available in the market. Early discussions of a possible El Nino cycle returning in 2014 are emerging - how might this affect Australian production? There are signals that the cycle may be beginning but it is too early for models to predict any drought impact.
 
France: as previously reported due to the poor yields and almost disastrous quality, French faba bean crop is almost absent from the export markets. Market estimates had predicted roughly a 140, 000 t export from France but best estimates consider just 40% of that will be achieved. UK trade continues to benefit enormously as a result.
 
Egypt. Earlier brisk trade has slowed with the market currently apparently saturated in the short term. Some gentle interest is present for shipments to leave in the early part of 2014 but trade is quiet.
 
Sudan. Bagged bean market trade is also now temporarily satiated and movement of forward purchases is slow. Prices are relatively high and a stronger UK currency is discouraging calls for shipment. Concerns could arise if orders remain unshipped at the turn of the year as the annual Sudanese embargo on imports closes the export window mid-January.
 
Field Beans - general
The crop is believed to be significantly larger than 2012 harvest but the perennial problem of not actually knowing availability on farm means there is considerably uncertainty as to where the market will go. With the Human consumption market currently full a downward trend in value seems inevitable, especially for samples that lost their bright pale appearance due to lack of attention to moisture content in the field or were poorly stored and dried.
 
Feed Beans
Feed beans are currently trading at around £235- £242 / t delivered continuing to ride a high premium over feed wheat. There are few buyers most of who seem to be trying to cover short positions. Poor samples are likely to fall in value as the season progresses
 
HC Beans
Shipments of bulk and bagged produce have been buoyant. Predicted estimates on the back of the good quality available have risen from potential exports of 150,000t to 240,000t for crop 2013. With over 150,000t already exported there is believed to be more trade to come but this will compete with plentiful Australian crop and it is by no means certain to be realised. The market is currently quiet with little spot or early January interest. The market is subdued by an increasingly strong £ v the US$ and a full supply chain. Bean prices are good with a slightly widening premium of up to £10-12 over feed beans.
 
Combining Peas
Good quality marrowfats continue to hold around £350 / tonne with deductions for poor colour. A top quality sample will hold a premium of up to £40 / t Pale or poor colour marrowfats peas have limited end use possibilities, emphasising the need for growers to pay attention to the crop near to and immediately after harvest. There remains good interest in the Asian market for good quality samples and this market is capable of growing much further in the future.
Best quality blue peas for micronising have continued to hold the earlier reported price up to £330/t but there has been an influx of poorer quality paler samples causing a general fall in values, emphasising the premiums available to growers who are able to manage colour retention within their loads. Run of the mill samples for feed have fallen to around £230 / t.
Yellow peas are struggling to compete with cheap availability from Canada, France and the Ukraine.
 
Peas from crop 2014 will continue to have a good market and value as it seems likely that there will be minimal carry over. Buy back contracts and seed remain available for crop 2014/15 with fixed price, market price or maximum / minimum terms.
 
Agronomy notes
Ahead of spring drilling plough as early as possible if the conditions permit. Use the winter period for “stale seed bed” techniques to maximise weed control.
 
If saving seed don’t forget to have it tested at the PGRO for stem nematode and disease loading as well as germination and vigour.

KT Activities / PGRO & BEPA events

PULSE Magazine – Publishes in December, distribution via CPM magazine. Ensure PGRO has your email address to get an electronic copy.
 
VAA Winter Meeting – PGRO – 28th January
 
PGRO / Syngenta Road Shows
Peterborough 22nd January at PGRO
Chipping Norton 29th January
York 4th February
Bury St Edmunds 5th February
Telford 11th February
 
Full list of provisional PGRO events for 2013/14 http://goo.gl/vYgSi8
 
No issue next month so here is wishing you all a Merry Christmas and a happy and prosperous 2014.

The next pulse Market Update will be the end of January 2014.