BEPA Pulse Market Update
By Phil Rix, President of BEPA.
Phil Rix, President of BEPA, comments:
Summary
Soft commodities in general have become hot news since the last BEPA report in November as wheat has nudged 200 and oilseed rape 400, kick-starting the food prices debate and concerns about food security.
Pulses have followed wheat up in price as feed demand continues to respond to $14/bu soybean prices. These are unprecedented times for global food demand, largely driven by increasing living standards in emerging economies.
The main message to persuade UK growers to plant spring beans and peas this year is rotational benefits – but, in addition, market forces mean that pulse prices can only continue to be firm over the next year.
Feed Beans
Demand remains even stronger since November with every chance beans will run out. Compounders are having to pay over 240/tonne at present and the big question is what UK stocks remain normally about 200,000 tonnes would be expected at this time of year (1/3 of the usual UK crop). However, this is likely to be a considerable over-estimate. The beans premium over wheat had increased to 40/tonne – another indicator of feed demand. But recent Middle Eastern problems in wheat importing countries will boost wheat prices again.
Human Consumption Beans
Despite the difficulties apparent in Egypt, demand is strong, but the price of feed beans is restricting the human consumption premium to about 20.
Ports remain idle and banks closed and the / versus $US remains a big concern for exporters. The recent Australian bean harvest was rain-affected and quality is down, with their pricing now close to that of UK material.
France sent 27.3k tonnes to Egypt and almost 2k tonnes to Norway (fish-feed) which has been their average per month to this destination. Egyptian buyers are reported to be active in France, saying UK availability is restricted. The pound’s recent loss against the must be an advantage for UK exporters.
Marrowfats
Enquiries are evident from the Far East, but little old crop remains as export quality. Most contracts for 2011 harvest are in place at 250-275/tonne. Given the cropping area competition, there will be little speculative planting this spring.
Blue Peas
Any good samples remaining are fetching around the 250 mark. There is likely to be strong demand for blues for the micronising market this coming year, but supply will be the problem.
White Peas
Rumours that the French production still remains to be sold – although prices, linked to soybeans, are strong at 280 delivered Rouen.
UK yellows have run out and there appears restricted availability too from Canada. Notably, overall Canadian pea production fell 14% this past year and carryover stock has been halved to 400,000T after poor conditions for both sowing and harvest.
BEPA is the trade association representing the processors and users of British-produced pulse (dried pea and bean) crops. BEPAs key objectives are to liaise with UK government and other national and international associations, encourage the consumption of home-produced pulses by promoting their value as healthy, high-protein and high-fibre foods, and to liaise with crop scientists and plant breeders.
