Market calm in Canada due to softening of pea and gram prices in India

14-Nov-2024 08:50 PM

The pea and gram market in Canada, especially in Saskatoon, is currently experiencing a period of stability, largely due to limited trading and a softening of prices in India.

In the past week, the price of peas has remained largely unchanged in the western Canadian markets. This trend coincides with a slight dip in the prices of both peas and Desi gram in India, which is a significant player in global pulse markets.

In India, sowing activity for pulses like gram, lentil, and peas has begun to pick up pace, with an expected increase in the sowing area for gram.

This rise in sowing could be attributed, in part, to the Indian government’s decision to raise the minimum support price (MSP) for gram, which might encourage more farmers to plant it.

Analysts speculate that if the softening of pea prices continues, the Indian government could reconsider its import policy, particularly ending the duty-free import status for peas after December 31, 2024. This would likely lead to the reimposition of import duties, affecting Canada's export prospects.

While there is a good stock of peas available in India, they are still being sourced from Canada and Russia. Canadian exporters of yellow and green peas are facing price plateaus—yellow peas are trading at about $10.00-$10.50 per bushel, and green peas are priced between $15.50-$16.00 per bushel. Maple peas, on the other hand, have seen a slight price increase, ranging from $19 to $22 per bushel.

In the global marketplace, Chinese importers have shown a growing preference for peas from Russia over those from Canada. If India's demand for peas weakens or if imports are reduced, Canada may need to seek new markets to maintain its export volume.

This could potentially lead to shifts in trade relationships and pricing strategies in the coming months, especially if India imposes duties on imported peas or if competition from other countries intensifies.

Overall, the Canadian pea market is in a relatively stable phase, but external factors like India's import policies and competition from Russia may create challenges for exporters in the near future.