To put it bluntly, there is not much to say about the chickpeas market this week. When it comes to market analysis, instead of trying to force analysis of something that’s not truly relevant, it’s best to acknowledge there is just nothing really moving markets right now. After all, we have yet to see a square peg successfully fit into a circular hole.
What we do know is that chickpeas acres are expected to expand in 2018/19 not only Canada but also in some other major producer countries, as we reported in last week’s weekly digest.
We find that old crop chickpeas prices are holding well. Old crop Kabuli chickpeas prices are sitting around 32¢ CAD per pound. New crop Kabuli chickpeas prices are hovering around 29¢ CAD per pound. What’s clear though is that as we get into the 2018/19 crop year, the premium of old crop prices over the new crop prices is eroding.
Comparatively, we find that benchmark Indian chickpeas prices continue to drive lower as rabi crop supplies are flooding the markets.
This week’s Saskatchewan crop report showed 9% of all crops are in the ground thus far. While it’s indeed progress, it is behind the 5-year average of 19% and last year’s progress of 11% planted. Specific estimates on the chickpeas planting progress in Saskatchewan were not reported this week.
On the chickpeas sales front, we are sold out on 2017/18 old crop, well ahead of the price decline we’ve seen over the past 2 months.
To sum up, new-crop chickpeas prices are under pressure, This is due to higher chickpeas acres expected in 2018/19.
The progress of the chickpeas planting in Saskatchewan is an important factor to watch in the next weeks.
On the 2018/19 new-crop, we are at 15% sold, making this sale recommendation back on February 18th. There’s nothing wrong with shopping your new crop chickpeas on the FarmLead Marketplace. With the market being a bit slower, there’s nothing wrong with posting an offer and letting the market come to you.
Have a great week!
– Brennan, Garrett, and Adrian
May 10 – An Estimated 416,940 MT of US Chickpeas Production in 2018
May 6 – Chickpeas Weekly GrainCents Digest
April 29 – Chickpeas Weekly GrainCents Digest
April 27 – StatsCan Expects 346,200 Acres of Chickpeas in Canada in 2018/19
April 23 – Chickpeas Pasta? Yes, It’s a Thing