Yellow Peas

[dave4441]

Pea market is falling as fast at destination country as it is in at grower level in Canada.

Lentil price basically collapsing as well and no tariff issues there. I believe durum will have to drop to wheat price now as well.

[SmallTimeOperator]

Yes profit margins for pea buyers must be swelling until they fill contracts booked prior to this price drop for the farmers.

[SmallTimeOperator]

It’s all harvest pressure. Scrolling back through the texts, could have got $9 locally up till Aug 7 which was actually a trigger price then became the price. And then erosion slowly down to 6.55 yesterday. Unfortunately can’t blame Liberals on this one, only farmers hauling to town. Don’t like the price, should have grabbed the $9. Fill the bins and wait.

[fcr]

it’s been awhile since peas have been this low. Cargill off the record tells me they are glad they are out of buying peas. too much volitlity and they have enough business with wheat , durum ,canola and barley.

[AlbertaFarmer5]

How does an elevator originate peas or any other crop without a futures market? The risk has to be massive. Assume their margins have to be large enough to justify that risk?

[fcr]

Friend worked for a grain company selling barley to overseas markets. He would work in the middle of the night when their markets were open. Told me they do get caught on the wrong side occasionally but try to be on the positive side more than not.

[wheatking16]

How does an elevator originate peas or any other crop without a futures market? The risk has to be massive. Assume their margins have to be large enough to justify that risk?

Considerable risk, IMO.

Offset with sales.

Providing credit to buyers.

Narrow margins, credit risk, time value of money.

The idea of large margins over time is misleading IMO.

Gains are made, losses are realized.

[furrowtickler]

It’s all harvest pressure. Scrolling back through the texts, could have got $9 locally up till Aug 7 which was actually a trigger price then became the price. And then erosion slowly down to 6.55 yesterday. Unfortunately can’t blame Liberals on this one, only farmers hauling to town. Don’t like the price, should have grabbed the $9. Fill the bins and wait.

Is that before or after the massive hail storm?

glad I never booked a bushel before that storm
buying out contracts after events like that can be devastating

[Grahamp]

Is that before or after the massive hail storm?

glad I never booked a bushel before that storm
buying out contracts after events like that can be devastating

This is a huge problem and highlights the brokenness of the system. In my case I need off the combine movement for cash flow and storage, but especially cash flow. You can’t guarantee off the combine movement unless you are contracting well in advance. Then you are at risk to brutal buyouts if anything goes wrong. I have too many oats sold and have thankfully missed the hail storm and then we got down to 1.5 degrees on Saturday night. But either one could have been terrible.

[furrowtickler]

This is a huge problem and highlights the brokenness of the system. In my case I need off the combine movement for cash flow and storage, but especially cash flow. You can’t guarantee off the combine movement unless you are contracting well in advance. Then you are at risk to brutal buyouts if anything goes wrong. I have too many oats sold and have thankfully missed the hail storm and then we got down to 1.5 degrees on Saturday night. But either one could have been terrible.

Exactly, some obviously have never been there
Definitely not our first rodeo to lose a crop even up to the day of harvest