Recent reports out of India hint at some improvement of pulse plantings but still estimate
a significant drop in production in the world’s leading pulse producer and consumer.
Reports estimated delayed plantings due to sporadic and insufficient rainfall of between
3.7 million and five million acres by late July, though most expect at least half of these
acres to eventually get planted.
Even if plantings catch up, India’s largest pulse-producing areas won’t nearly produce the
15 million-plus tonnes harvested last year. The approximately 2.5 million-acre decrease
nine to 10 per cent.
Compounding this, Indian’s main import supplier, Myanmar, is
having an equally tough production year. Imports for 2008 have been slower to date than
average as world supply has been tight.
All the bad news for production in India has had little impact on recent prices, however,
as FarmLink’s own internal cash price for yellow edible peas is a full dollar per bushel
off the May/June highs of $9.50 to $9.80 (prices in southern Saskatchewan).
acreage and production decrease won’t be known for some weeks yet, adding future
potential for volatility to the market.
– The FarmLink Market Insight was researched and produced by FarmLink Marketing Solutions, a marketing advisory service for Prairie farmers, and is published here with permission of the authors.