Saskatchewan Crop Production Week

[charliep]

Just looking for feedback/ah ha's that anyone who attends the crop production week in Saskatoon gets. There look to be some extremely good marketing topics.

This conference is also the first time the trade really puts out new crop pulse price contracting alternatives. Looking for feedback here as well.

When is the major agricultural show in Brandon?

[boone]

charlie: Brandon is the 20th, 21st, 22nd of January and it looks like a good agenda.

[charliep]

Any feed back on new crop pulse pricing ideas? Was there anything that really took you by surprise/presented a good marketing opportunity on any of the grains?

[TOM4CWB]

Charlie;

Couldn't find any feed pea prices for fall of 04.

Ocean freight and currency volitility is making sales hard to put together for new crop.

Interesting that feed peas from Alberta are being sold to India ... to be consumed in the human edible market...

We were told India had a short pulse harvest last month... and needs food for mouths... feed peas are the least expensive.

[TOM4CWB]

Go Figure Charlie;

I just read this report;

"Winnipeg, MB, Jan 16, 2004 (Resource News International via COMTEX) -- Line companies in western Canada are currently offering premiums for feed peas over edible peas, as the edible market softens and feed demand remains steady.

In the country feed peas are currently priced between C$4.75 to C$5.00 a bushel right now, said sources. Edible peas, which are usually at a premium to the feed pea market are currently valued at around C$4.65 to C$4.90.

The current situation is largely due to a lack of demand from the edible market, said Eric Fossay, senior merchant on peas with Agricore United.

Overall demand for feed peas has been good recently, especially when compared to the edible market, said Fossay. Canada's main market for edible peas, the Indian sub-continent, had some of their best monsoon seasons in recent years. The ample supplies of domestic alternatives, combined with high freight costs and a strong Canadian dollar have made the region "reluctant importers," said Fossay.

Currency is less of a factor in the European feed market, because the euro has strengthened along with the Canadian dollar, so "they can afford to pay more for it," said Fossay.

Last year, feed pea exports to Europe were virtually non- existant. However, due to tight EU stocks, Canada has exported 400,000 tons of feed peas to Europe this year, compared to 300,000 tons of edible peas to the Indian sub-continent, said Fossay. The EU is also short on corn, sorghum and other feed sources, making mid-protein peas "a good fit." He expected demand to continue until March, when the new South American soybean crop becomes available.

Fossay thought there were still roughly 700,000 to 1 million tons of Canadian peas to move this year. While he had little doubt about exporting the peas, prices will likely drop by the spring, when the South American crop will dictate market values.

While the final outcome of the whole BSE situation is still in the air, Fossay thought blood and bone meal trade would drop off and be replaced by plant protein. However, he didn't think former blood and bonemeal markets in Asia would convert to feed peas overnight, as soymeal would be a more logical choice. BSE is also helping raise demand for feed peas in Europe, and domestically, Fossay added.

Feed peas are used more traditionally in hog rations, said Rick Hallock, a special crops trader with Toepfer Canada. As a result BSE concerns have yet to really affect feed pea demand, Hallock added.

Canada "had a good run" through Thunder Bay and Churchill this fall, said Hallock. While the winter closures of the two ports has caused exports to drop off, feed peas are still moving off of Canada's west coast. "You have to have large volumes to make it cost effective to move it that way," said Hallock. The Vancouver vessel list shows a 44,000 metric ton feed pea shipment will load in the near future. Sources said the shipment was most likely destined for Europe. The more cost effective Thunder Bay port will reopen at the end of March."

I was surprised by what the line co trader at Saskatoon said... most certainly he was not from Agricore United!