Join Date: Nov 2014
Location: NW North Dakota
Mentioned: 0 Post(s)
Quoted: 90 Post(s)
Local viterra market recap end of Nov.
o Pulse supplies are dwindling in India, as well as other surrounding countries such as Pakistan, Sri Lanka and Bangladesh. It seems at though demand was miscalculated, as many countries didn’t buy the right quantities.
o Another reason for optimism is the weather pattern India experienced during crucial stages of its current growing season. The scanty monsoon limited rains and created drought in some areas, which has impacted the pigeon pea crop. Indian growers have estimated that crop could be 50% lower compared to last year’s crop in some areas. As a result pigeon pea prices have nearly doubled in the last few weeks in India, which prompts traders to look at importing both green and red lentils as a cheaper option. The idea is that India will again look to Canada for additional lentil demand.
· In my mind, this bodes well for the U.S. market as well because an increase in demand should translate to a more competitive international market. Buyers have been able to come in with low offers because elevators/processors have shown that they’ve been almost desperate for movement of old stocks.
o Rabi (winter) planting is also down in India. There is talk of El Nino forming, which could be bad for rabi crop production as it would onset dry weather across India. This causes some concern over the chickpea production.
· Some traders believe India could drop its quota on pea imports in 2019 if the chickpea crop turns out to be disappointing. India has already granted some special import licenses to buyers, which is allowing for some movement of yellow peas.