Pulses Market Update, 28.07.2023
World trade in chickpeas and lentils is expected to remain relatively steady in 2023, with solid demand from South Asia underpinning markets, according to the latest outlook from the International Grains Council. (AGC)
The IGC sees the world trade in chickpeas in 2023 at about 1.9 million tonnes, which would be unchanged from 2022, with world lentil movement also relatively steady on the year at around four million tonnes.(IGC)
The war has had a significant impact on Russian companies' trade patterns in pulses. However, due to the decreasing grain commodity prices this year, Russian farmers have increased pulse acreage. This could affect world prices later this year.
Red Lentils
Turkish suppliers are finished harvesting their lentils. The harvest is expected to be 30% higher than the previous year, leading to increased domestic consumption. Turkish lentils are preferred in the domestic market due to their competitive prices and the strong US dollar exchange rate, which reduces the chance of competition with imported lentils.
Canada produced a red lentil crop of around 1.8 million tonnes (Mt) last year, and production from the upcoming harvest is expected to be down by around one third due to the lack of precipitation. (Graincentral).
Most Turkish suppliers are offering Canadian-origin red split lentils, and the prices are more attractive than last year. I think it is the right time to secure prices for tenders.
Chikcpeas
Turkish chickpea planting and production have increased by 20%, and a good yield of around 300,000 metric tons (MT) is expected, leaving 150,000 MT for export. Restrictions on chickpea exports are expected to be abolished with a good crop this year.
Turkish suppliers are offering quite attractive prices compared to Argentina, Canada, and France for long-term contracts. France has also returned to the market and is being aggressive in its offers.
Australian Chickpea prices have softened slightly, and container business is back to pre-COVID volumes, a positive development for the Australian winter-crop marketing year. However chickpea crop of 541,000 MT was roughly half of what was grown the previous year, as planted area was also down.
Canada will face stiff competition from Russia in kabuli chickpea markets in 2023-24, according to a panel of experts. Russian growers are expected to harvest 501,000 MT of the crop, up from 434,000 MT last year and 324,000 NT two years ago. However, monthly merchandise trade data from Statistics Canada shows that Canadian chickpea movement through January 2023 of 113,800 MT was more than double what moved during the same time period during the 2021-22 crop year. Canadian chickpeas are currently among the most expensive in the market.