Canada hikes forecasts for chickpea, dry bean prices
The Canadian government raised its forecasts for dry beans and chickpea prices, as the Indian government steps in to control soaring prices there.
For chickpeas, prices to farmers are predicted to rise to between Can$950-$980 per tonne for 2016-17, compared last month’s estimates of Can$790-$820 per tonne.
The forecast also represents an increase of at least Can$135 per tonne year on year.
The Canadian agricultural ministry, AAFC, estimated dry beans prices at Can$880-910 per tonne. September’s price forecasts hovered around Can$800-$830, while farmers received Can$775 per tonne last year.
Chickpea prices have found support from tight supplies in India, the world’s largest consumer and importer, besides concerns over the harvest in Australia, a major pulses exporter.
‘Strong export demand’
AAFC flagged the boost to prices from strong demand, with Canada’s exports alone expected to exceed production for a third successive year in 2016-17, driving stocks down to 5,000 tonnes at the close of the season – a drop of 86% over two seasons.
“The US and the EU are forecast to remain the main markets for Canadian dry beans, with expectations that Canada with continue to expand its market share in the Middle East,” the ministry said.
For chickpeas, AAFC said that stocks are also expected to fall to a “tight” 5,000 tonnes in 2016-17– a slump of 96% over two seasons – sapped by firm export orders.
“The average price is forecast to rise due to strong world export demand.”
Indian demand boosts production
The price upgrade also comes against a tide of elevated import demand from the key Indian market.
After suffering two droughts in a row, India has decided to release its buffer stock before the festive season this weekend.
The government also announced last week that it would import 90,000 tonnes of chickpeas through the state-owned trading firm MMTC.
Damp Australian weather
Meanwhile, Australia’s weather conditions continue to dampen production hopes in the country, another major pules exporter.
Regular, intermittent showers in Queensland has led the crop lower.
“Winter crop harvest will be delayed this year due to the season and we don’t see many chickpeas being delivered in November in northern New South Wales,” crop trader AgVantage, based in the state, said.
“Chickpeas have traded through Aus$1,000 a tonne this week into local packers, to Aus$1,010 a tonne for November delivery.”
(Source – http://www.agrimoney.com/news/canada-hikes-forecasts-for-chickpea-dry-bean-prices–10058.html)