August 2018 Chickpea Prices Recap – FarmLead (GrainCents)

Chickpea prices continue to be under pressure as the market continues to price in big crops in India, Canada, and the US.

Late last week, Saskatchewan Agriculture provided their first estimate of the province’s yield, calling for 15 bushels per acre of chickpeas. This is 24% below last year’s Saskatchewan yield for chickpeas of 19.8 bushels per acre. The 5-year average yield for chickpeas in Saskatchewan is 27.4 bushels per acre, meaning this year’s crop is clearly below the average.

Nationally, Statistics Canada said on Friday that Canadian chickpea yields would come in at 22.2 bushels per acre this year. Compared to last year’s average haul of 21.9 bushels per acre, this is 1% higher. When compared to the 5-year average of 27.8 bushels per acre, this is 20% higher/lower.

As we’ve now turned the calendar over into September, the month of August ended with chickpeas pricing still sitting below their 5-year averages.

Looking at average prices in Saskatchewan, desi chickpea prices were nearly 19% higher than where July ended, and nearly 65% lower than at this time a year ago.

2018-08-29-SK-Desi-Chickpea-Prices

Kabuli chickpea prices were the same as the end of July, while being 66% lower than how kabuli chickpea prices in August 2017 finished.

2018-08-29-SK-Kabuli-Chickpea-Prices

Ultimately, there is some bullish news in this recent StatsCan production report for Canadian chickpeas.

For our GrainCents readers, we’re watching a variety of factors that might affect chickpea prices: 5 are bearish, none are bullish, and 3 are noise.

(If you’re not familiar with what “noise” is, then we recommend you check out our GrainCents risk management process towards chickpeas prices.)

This month, GrainCents investigated topics such as:

• Rebounding chickpeas prices,
Chickpeas harvest progress across North America, and
StatsCan’s estimates for chickpeas production in Canada.

For our GrainCents readers, we’ll be continuing to monitor the harvest progress and yield in Canada, India, and the US, and the potential effects on chickpea prices very closely.

If you want to be more on top of what’s happening in canola prices (and making more sense of grain markets), join us for your free trial at GrainCents.

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About the Author
Brennan Turner

Brennan Turner is the CEO of FarmLead.com, North America’s Grain Marketplace. He holds a degree in economics from Yale University and spent time on Wall Street in commodity trade and analysis before starting FarmLead. In 2017, Brennan was named to Fast Company’s List of Most Creative People in Business and, in 2018, a Henry Crown Fellow. He is originally from Foam Lake, Saskatchewan where his family started farming the land nearly 100 years ago (and still do to this day!). Brennan's unique grain markets analysis can be found in everything from small-town print newspapers to large media outlets such as Bloomberg and Reuters.

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