New crop pea pricing

[edbaker]

I have found an offer of $4.50/bus for green peas delivered in the fall for new crop and was wondering if this is a good price compared to offers from other companies and also if your opinion on price direction for peas for the upcoming year. It sounds like there will be adaquate protien products for the upcoming year especially soymeal so I was seriously thinking about locking in part of my production. What do you think?

[edbaker]

$4.50 is a pretty good price, I think I would lock in at least 30%

[edbaker]

I agree $4.50/bu is a good place to get started new crop pricing - particularly if you want to get supplies moved off the combine. The new crop pulse outlook is looking a little more optimistic given both crop production problems in some our major competitors (Australia and Turkey) and good import demand from some of the major consuming nations (S.E. Asian countries like India). The demand on the edible pea side has been mainly for yellows with the green market very quiet. Given the ugly grain/oilseed outlook, I suspect that pea acreage will be above the 2.3 mln acres in the Stats. Can. seeding intentions but still below the 2.7 mln acres seeded last year. The continued large acreage here in western Canada and likely ugly 99/00 US soybean meal prices make $5/bu plus edible pea prices a long shot based on what we know today. Quality of greens will remain the real issue with a high quality crop (nice sharp green color) resulting in continued discounts to yellows and a crop with a lot of bleaching sending prices to premiums over yellows (hopefully your crop isn't one of the ones with bleaching problems). Can you make money growing peas for $4.50/bu?

[edbaker]

I think that $4.50 for green peas in the fall is a decent price considering all of the other commodities falling in price. I would kie to know if you contracted any at this price, and if you did, who you contracted with.