Pulse Market Update (31.01.14)

January 2014

International Overview

Canadian: Whilst the Canadian pea crop may not have quite hit the 4 million tonnes anticipated, it was still larger than the previous harvest, and is inevitably now having some downward influence on world market prices. The total pulse harvest rose by 14% and exports are rising, but carry over stocks will rise too.
Australian: Good quality product is now competing in the export markets.
France: Winter sowings were disrupted in northern France due to the same wet conditions we have experienced in the UK. At the turn of the year, pea stocks were slightly less than year on year, largely stemming from a reduction in production. Consumption was more or less similar, with a slight drop in exports outside the EU. Prices are being affected by falling wheat values. Yellow pea market is gentle. Due to quality issues, French faba bean exports to Egypt run 40% behind year on year as previously reported and their feed market in Norway continues to grow. French markets remain optimistic about export opportunities as availability from the UK slows.

Egypt: Demand is increasing again for March shipment. Currency is moving 3-5% in favour versus the US$ and import interest is resuming. Looking forward, the Egyptian government is focussing hard on incentivising local production of commodities in order to help the local economy, but the arable area is so small and the population so large, that this is unlikely to impact the market potential for UK export beans. There is an interesting potential restriction on bulk shipments from Australia with at least temporary lack of docking space in main Egyptian ports.
Sudan: The market is now effectively closed with the seasonal import ban.
USA: In previous reports the increase in US pea production was noted. Cropping has more than doubled in the last two years to approximately 350,000 ha (700,000 tonnes)
Field Beans - general
The early open period in the autumn gave indications that spring plantings would suffer - but the quick close and subsequent wet has significantly opened up possibilities for a spring planting. Minimum contracts over feed wheat are available, new crop premium at around £70.
Feed Beans
Feed beans continue trading at around £245/t ex  continuing to ride a very high premium over feed wheat and above its protein value vs Soya. Buyers are mostly trying to cover short positions. Once the shorts are covered, it is anticipated the market will ‘correct’ downwards.
Human Consumption Beans
Strengthening currency has negatively affected all pulse exports of late. The prices in the market have held high on a scarcity of feed bean offers and short sellers struggling to cover their commitments. Sellers have been reluctant and prices have risen a little to encourage movement.

The lack of a clear supply position from the UK crop leads to this being an almost constant problem for traders and growers alike. This has resulted in the premium over feed beans being as low as £5/t at times. Current premiums are around £15/t. French crop is more actively being promoted and values are likely to fall.
Combining Peas
The domestic Market for marrowfats remains static but there is some interest from the Far Eastern importers. Stocks remain low, a situation that will continue through to 2015 at least. Contract uptake for 2014 crop has been quite slow until the turn of the year but interest is picking up as prices remain similar to last year at around £350/t and other commodity crops prices fall. The large blue market is dominated by Canadian production and a big crop in 2013 is now starting to have a downward effect on prices pushing them below the levels of 2012/13 trade. That said, there remains an £80- £100 premium over feed peas for good samples. Increased UK yellow pea crops have suffered under the wider weight of the availability of large blues and prices are now significantly below large blue levels. The rise in UK yellow pea production is thought to be a result of growers in 2012 planting ‘whatever they could get’ by way of spring seed.
UK 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.

Seed crop production contracts are also available.
Agronomy notes
We have received our first plant sample of the year- winter beans infected with stem nematode. The nematodes live in the soil and are also transmitted through the seed. Wet conditions increase nematode activity and bring soil living nematodes near  to the surface.
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.
An EAMU  for the use  for residual herbicide  Dual Gold on beans has been released. Dual Gold  contains the active ingredient S-metolachlor. MAPP number 14649 and is active against a range of annual grasses and broad leaved weeds.  
EAMU number 0163


KT Activities / PGRO & BEPA events

PULSE Magazine – Publishes in March distribution via CPM magazine. Ensure PGRO has your email address to get an electronic copy.
PGRO / Syngenta Road Shows
York 4th February
Bury St Edmunds 5th February
Telford 11th February
Full list of provisional PGRO events for 2014

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