News Capsule: Peas: Impact of the Canada–China Agreement
28-Jan-2026 10:40 AM
News Capsule: Peas: Impact of the Canada–China Agreement
★ The recent rally in Canadian yellow pea prices has started to slow. Buying interest has cooled after the third week of January, with prices stabilising in the range of C$7.50–8.25 per bushel.
★ The main driver behind the earlier price rise was the Canada–China agreement, under which China has agreed to reduce duties on Canadian yellow peas, canola seed and canola meal from March 1. While the deal supported prices, the pace of the uptrend is now easing.
★ According to initial projections by Agriculture and Agri-Food Canada, pea acreage in 2026/27 is expected to decline to around 1.2 million hectares. Production is estimated at 2.85 million tonnes, lower than last year.
★ Exports are projected to increase to about 2.7 million tonnes, while ending stocks are likely to fall to around 755,000 tonnes.
★ Overall, the price surge appears to be losing momentum, but reduced supply is limiting downside pressure. With shipments expected to begin from March, demand support is likely to improve, which could have a direct impact on Indian markets as well.