Chickpeas prices continue to face bearish headwinds as we transitioned from March into April and now into May.
The issue of the Indian government interfering in the pulse markets, including chickpeas, was a common theme of the GrainCents Weekly Digest. We have also reported on how India’s monsoon will impact pulse prices.
As we headed into April, the market was still discussing the USDA’s Prospective Plantings report said that American farmers will plant roughly 665,000 acres of chickpeas in 2017/18. That is up 7% year over year.
At the end of April StatsCan said that Canadian farmers will plant 346,200 acres of chickpeas in 2018/19. This is more than double of what was seeded in 2017/18. If achieved, this is going to the biggest number in more than a decade and intuitively bearish.
Bear in mind that the US is by far the largest customer of Canadian chickpeas. But with higher acreage in both countries, 2018/19 ending stocks are looking to grow significantly year-over-year.
Here are a few other factors that we looked at this month that impacted chickpeas prices:
- Chickpeas are now in your pasta;
- Desi chickpeas prices are looking questionable; and
- And what in the world is going on with the US trade policy?
Be sure to sign up for your free 3-week trial at GrainCents as this month could be the most impactful for how and when you price your chickpeas for the rest of 2017/18 old crop, as well as a significant portion of your 2018/19 new crop production.