Pulse market shakes, but holds steady

Reading Time: 2 minutes

Published: March 7, 1996

WINNIPEG – Special crops should hold steady this year, despite strong cereal and oilseed prices, says an industry official.

While some analysts have projected a significant drop in special crop acreage because of record wheat returns, Marlene Boersch says good prices and the rotational benefits of pulse crops should counteract that trend.

The market’s message to farmers is to keep growing pulses, said the vice-president of Berdex Canada Ltd., a Winnipeg company that exports special crops. Speaking at a market outlook conference sponsored by the Canadian Wheat Board, she outlined the following prospects for some of the West’s main special crops:

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  • Peas – While some in the industry have predicted a drop of as much as 30 percent in acreage, Boersch is more optimistic, saying that experienced growers will stick with the crop.

Forward prices of $5.40 a bushel for feed in Alberta and $5.75 to $6 for edible peas are well above break-even prices and look good compared with wheat.

She expects a 10 percent drop in acreage and a three percent decline in production. Total supplies will be down and world supply and demand should be tighter. Prices should remain reasonably strong toward seeding time and stay steady through the year.

  • Lentils – Improved cereal prices will have some impact and acreage and production will likely drop 13 percent. Again, rotational benefits and good prices should prevent a larger decline.

Demand should be strong and while the stocks-to-use ratio is higher for lentils than peas, farmers can expect to sell their crop at prices similar to this year. Fall contracts should be 22 to 23 cents a pound.

  • Canaryseed – Acreage, production exports and prices have seen wild swings in recent years, so forecasting is tricky. Boersch expects a 10 percent increase in acreage due to excellent old-crop prices of near 30 cents a lb. and forward pricing of 19 to 20 cents. Break-even prices are around 15 cents.

About the author

Adrian Ewins

Saskatoon newsroom

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