Real story on Pea prices

[riders2010]

According to market news we are basically selling our peas cheap to marketers in india that are scamming the public at high prices making it almost unaffordable to eat peas to the point where other pulses are being substituted. This is just another story of the market system and greed and where we are headed. Larry Weber lists prices on his market letter what is that translated in english per bushel does anyone know? This idea there are too many peas is just bullshit I wonder how far down the market ladder the scamming is going on? and who knew about this apparently going on for over 2 years now?

[bucket]

According to weber's letter today:

The wholesale rates are currently Rs 16,700 a tonne (having gone up in the last few weeks from Rs 14,000 a tonne) and dal is offered at Rs 23,000-24,000 a tonne. It was a shocking revelation that retail price of yellow peas in Mumbai was Rs 40-45 a kg, far above what the usual costs would justify.

If the following conversion is right, then they are worth roughly 10 bucks a bushel wholesale, and the fact ocean freight is nothing compared to 2 years ago - we are being royally f*****!!




Live rates at 2010.08.24 02:40:00 UTC


16,000.00 INR = 361.172 CAD
India Rupees Canada Dollars


1 INR = 0.0225733 CAD 1 CAD = 44.3002 INR


Am I missing something mr.weber?

[haveapulse]

361 CDN (but this is in India and you have to get this to India)
The following costs apply plus or minus occuring cost variances and charges which may apply like demurrage fees;

95$ PMT average cost of container freight with to most ports of India (vessel freight would be less)
26$ PMT to stuff into a container (FOB rates from loading vessels from terminals are less)
45$ PMT freight from most points in Sk. (less in Alberta)
without any costs of processor cleaning, loading and documents
to do the business that is a 195$ pea
5.30$ Bu.

Today the bid was $5.35 at some elevators. US peas are trading for less.

The gap between the Indian wholesaler and the Indian consummer is significant, the gap between the Canadian buyer and the seller is not due to competition.

If you wish to note price gaps please take a peek at wheat costs comparisons with the CWB, also noted on Weber.

With pulses the CDN farmer gets a very good deal, mostly attaining values over the US farmer.

I note due this phenomena is due to competition a concept not employed by the CWB marketing system, hence the lower prices enjoyed by the Canadian farmer for wheat, and barley.

Enjoy!

[haveapulse]

Wheat in Billings on Weber was $6.68/ 7.00 CDN.
$6.42 in Ontario

10.06 for 15% protein Minneapolis.

[haveapulse]

Weber 4.46$ ND (North Dakota) yellow peas.

[riders2010]

So correct me if I am wrong if $1 cdn is roughly 45r. Then the retail cost of 45r for kg is 1 / 2.2 = 45 cents a pound x 60 is roughly 27 bucks a bushel?

[Burbert]

SCAMMING in the market place, a new concept? Correct me, if'n I am wrong but isn't the market totally based on scamming everyone all the time. Creat a shortage, or the myth of a shortage and the stampede begins. Grain marketing is all about cheating, chiseling and lyin.... the bulls are runnin, should read the Bullsh-t is runnin...

[haveapulse]

Retail is always a considerable gap from the wholesale price, always has been always will be. Read Marlena Boersh report on the gap in world price between the wholesaler and the retailer, or walk into your local grocery store and buy a lb of peas or lentils and factor that the a bushel a farmer gets. I believe .04 cents a bushel of wheat in a loaf of bread not sure the number today.

Reality is the retail gap is true of all commodities from beef, to wheat, and peas in India.

Our elders, tried via the Pools and the Coops to gain producer share value by forming these business' with varied returns.

I merely point out that in pulses, Saskatchewan producers get better value than their US counterparts, in wheat they do not.

Perhaps basis this fact you may ask who is giving a better deal to the farmers, the pea buyers or the CWB?

Go figure.

[bucket]

I think prices are related.

When peas ran up the last time durum was moving up. The buyers could not get their hands on peas because the cwb had a good price on durum. The price had to rise.

It works the other way as well. The pea crops are shitty but so are all other grains and the buyers know they can get product cheap.