PULSE MARKET UPDATE - December 2024

December 2024  

                                               
Commentary
The markets have been quite quiet in recent weeks, with routine but relatively low levels of activity. There are however some interesting factors governing the overall calm.
Presenting an “extended window of opportunity” for UK exporters, especially for containerised produce, Baltic region bean crops have continued to be very variable, with quality lower than that to which export markets have become accustomed.

Australian bean crops have been good, especially in the northern areas, but transport and logistical issues moving the beans has presented significant challenges. More traditionally it has been the western and southern regions that have produced the earliest bean supplies, but the southern crops have apparently suffered more this year. That said up to 110,000 tonnes are already heading to the Egyptian market and are still likely to arrive before the New Year, at which point European exports opportunities will close for a significant period.

Further emphasising that the UK growers and traders compete in a world market, the support of Russia by China, is impacting the international pea values. China, traditionally buying huge quantities of peas from Canada has switched to purchasing from Russian supply, releasing significant discounted Canadian surpluses which are now undercutting the contracts of recent UK farm gate commitments, making exporting and the retention of international trade clients extremely challenging.

The UK autumn has been relatively open this year and early indications suggest more normal autumn wheat drilling has taken place. Although it is always hard to get a true picture of spring land availability, recent weather is likely to have completely shut down any land work until early springtime, so there appears to be significant opportunity for spring pulse cropping.  That said the impact of SFI option uptake is becoming much more apparent. Worryingly, widespread uptake at the expense of cropping is indicating a further significant drop in total pulse crop area just at a point when expansion of pulse area seems to fit precisely with the politically driven, environmental and food security agenda.

UK Pulses
Feed beans
Trading is slow, with volumes principally supported by demands of the integrated feed companies, especially in the poultry industry. Current values are typically around £212/t ex farm for January/ February movement, depending upon location. Although having fallen a little in recent weeks for those valuing them on a cost per % percentage protein, they still remain slightly uncompetitive against alternative protein sources, especially the falling value of soya bean meal. As a result, those selling and seeking immediate movement are likely to face a further discount of £5-£7/t.

The situation is not untypical of most commodities at present. With significant world events, economic slowdown, and general uncertainty being rife, few buyers are seeking to tie themselves into significant forward commitments, preferring instead to buy more on an 'as required' basis. This impact is seen both domestically and internationally, with UK feed bean exports to Europe also taking a significant downturn.

It is rare to make comments on feed bean quality here. However, it is clear that some growers of the later harvested crops in the UK have been caught out in their post-harvest produce management. When harvesting at relatively high moisture (20% and over) , delays in drying can lead to severe discolouration, mould formation and even some fermentation in store. Batches affected in this way face rejection, even for feed. They are effectively unusable without serious remedial actions incurring significant waste. (Beans above 18% moisture will deteriorate more rapidly in store.)
 
Export beans for human consumption
As already indicated poor quality elsewhere in Europe exposed opportunities for UK containerised exports and smaller bulk vessels into this market. Values have typically seen a premium over feed of £20-£30/t ex farm depending upon location.

The prime quality consideration for this market has always been visual appearance – clean, bright pale colour with minimal damage and blemishes – put yourself in the buyer’s shoes and apply the “would I eat that” criteria. That said the local markets are now very capable of cleaning up better “feed” samples for human consumption, so the premium for the best quality is capped at the capacity and cost of processing. The export opportunity window for UK produce will close very soon with the imminent arrival of the generally nicer looking Australian crop.

UK combining peas
As such a pea market does not really exist. It is essentially a collection of market end use requirements, demanding a wide range of pea types and qualities. In comparison to beans these markets have been quite busy in recent weeks. Not necessarily in absolute volume terms but in respect of external influencing factors impacting current trade and in positioning around future trade outlook and availability.

As previously reported volumes and quality from the UK crop 2025 are confirmed as having generally improved, although with wide variation and levels of satisfaction and as a result, enthusiasm among producers.

As most peas are currently grown on contract, with various clauses for quality and with values pre-determined, price indications below refer to produce offered in the free or open market.

Green peas
Micronising requirements have led the market but are now felt to be covered for a significant period ahead. The highest prices offered have fallen as a result. The value range for green peas is always wide due to different qualities and market destinations. Animal feed offers the lowest with values rising through processing into various aspects of human consumption. A bottom value in feed peas might well be under £240/t ex farm while samples with top quality colour and cooking attributes could achieve £365/t ex farm. Discounted for acceptability for processing, lower quality samples fall to nearer to £315/t ex farm.

Contracts for crop 2025 remain available offered on variously negotiated ex farm basis’s, typical might be a £300/t minimum to £400/t maximum, or alternatively on fixed prices with bonus options at values in between.

Marrowfat peas
Export trading remains under great pressure with alternative supplies making their way from Canada at very competitive prices. There is effectively no current market for open market samples. The £500/t plus, ex farm value, that many producers have recently assumed as an expectation, is not now realistic.

Contracting for marrowfat pea production crop 2025, has slowed significantly and current values are in a range £400/t - £450/t ex farm.

If interested speak to your merchant.

Yellow peas
Supply appears to have gone through boom bust cycles in recent years and is currently in a boom phase. International import prices are low and growers off contract are likely to find values they may have anticipated, hard to achieve at present. A feed value for open market yellow peas may be below £240/t ex farm. Where there is domestic demand for locally produced good quality peas, up to £310/t ex farm might be possible.

The long-term story of significant demand for vegetable protein extraction, healthy starch and fibre for human consumption remains, but without significant facilities in the UK to add value, open market produce remains in the commodity trade bracket.

Contracts will be available for 2025 crop - those interested now, should contact their merchant directly.

Maple peas
While in high demand there are no sellers making offers to the market. The trade has been caught somewhat by surprise in recent months – new export buyers and markets having appeared.  The lack of product makes indicative values of about £450/t ex farm almost incidental. Aside from the current relatively high values, advantages in Maple pea production include high relative tolerance to disease pressure and a reduced chance of issues relating to colour retention in the harvest sample. Slightly lower yield potential over green and yellow peas should be expected.

Contracts are currently available for 2025 production around £425/t ex farm might be offered.
Contact your merchant if interested.

Agronomy notes:

Spring sowing peas and beans : Farm Saved Seed users shouldensure they have seed tested. Do not use seed that tests positive for Stem Nematode. Details of PGRO seed testing services can be found here https://www.pgro.org/seed-testing/

Crop establishment agronomy notes

Variety selection:
PGRO Descriptive List 2025
Launched in November, here is how to catch up:
    •    Download the lists:
    •    Read the narrative:
    •    Watch the DL video:
    •    Listen to the Podcast:

Farm Saved Seed:
Frequently asked questions

DIARY DATES:
21/01/2025
YEN conference:  Peterborough
An interactive event to share lessons from a year
when water often ruled. Panel and table
discussions will involve the audience for all sessions.
Update on all matters YEN peas and YEN Beans
and setting up for 2025
Details here:
 
22/01/2025 
NCS project Conference
“From Soy to Sustainability”: 
Peterborough
Exploring innovative strategies to increase
pulse production and use in livestock diets,
featuring:
    •    Thought-provoking key-note speakers
    •    Expert panels
    •    Networking opportunities
Headline speaker Philip Lymbery will emphasise
the urgent need for change in our food systems.
Philip is Global Chief Executive of Compassion in
World Farming and author of Sixty Harvests Left:
How to Reach a Nature-Friendly Future .
Details and registration here
 
PGRO /Syngenta Roadshows: 
27/01/2025 South Cave, Hull
28/01/2025 Peterborough
The theme:
“Pulse Potential: Strategies for
Enhanced Productivity and Yields”
Registration opens soon
Details here: 
 
12/02/2025
Pest and Disease
Management in Combining
and Vining Peas and
Field Beans training course:
PGRO – Peterborough
For more info email info@pgro.org
The programme includes:
    •    Pests of seedlings and young plants
    •    Later season pests
    •    Crop disorders, diseases, and fungicide options
    •    Lunch and practical identification session
    •    Lunch, refreshments and literature are included.

The next Pulse Market Update:
January / February 2025