Pulse weekly outlook: Chickpea market remains stable

Chickpeas. (CalypsoArt/iStock/Getty Images)

MarketsFarm — Chickpea prices have remained steady in Canada, despite inclement growing conditions in key chickpea-growing regions.

The stability is mainly due to a global supply glut, with large carryout volumes from previous years combined with high acreage numbers in Canada, the U.S. and Australia.

Statistics Canada estimated Canadian producers will dedicate just over 300,000 acres to chickpeas, nearly double from two years ago. However, 2019 acres are down about 32 per cent from 2018, in which 442,900 acres were planted.

“All in all, inventories have gone down a bit, but with a new crop coming in there’s going to be more than substantial amounts for sale worldwide,” said Darwin Hamilton of Kalshea Commodities in Winnipeg.

Chickpea prices are slightly higher than at the beginning of 2019, though just hovering between the 25 and 30 cent per bushel range.

Hamilton predicted prices will remain steady — largely due to the fact that India’s large market doesn’t currently accept Canadian pulses.

Late monsoon rains in India threatened the nation’s pulse crops, which provided a sliver of hope that Canada could crack back into the market.

However, as monsoon rains have settled into India, “the outlook to move volumes into that market doesn’t look that good again,” Hamilton said.

— Marlo Glass writes for MarketsFarm, a Glacier FarmMedia division specializing in grain and commodity market analysis and reporting.

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