Market Report: Chick Peas 2nd Review

After a very uncertain & weather turbulent first month of new crop Kabuli chick peas harvest & arrival in  India, is  at least  settled in terms of prices With Harvest almost at the completion stage

Looking up the un usual slow pace of arrivals at various produce centers in India, and feedback received from the farmer community. now these is confirmed, that India is all set to be for the lowest harvest for Kabuli chick peas in last 4 years .

Arrivals across the centers were down by 70% compared to average arrivals of last 02 years, and the figures for final production can be somewhere between 300000 mts to 3500000

Prices of Indian Kabuli chick peas which was being traded  during month of February at levels of USD 900/950 usd per mts on Fob basis, for 42/44 count, are  today being offered @ USD 1125 – 1150 usd per mts on Fob basis .

These also prompted for the international community to turn their attention to other destination like Mexico,

To cover their needs with best quality,  Mexico Chick Peas during month of February was at levels of USD 1000/1020  usd per mts on Fob basis, for 42/44 count, are  today being offered @ USD 1220 – 1240 usd per mts on Fob basis . and there was a un exceptional buying done from Indian companies of Mexico chick peas during the month ended to cover up there short fall , which was then also followed by rest of world including Turkey and Algeria .

Looking the reaction of two biggest Kabuli type chick peas producing countries in last month Relative strength in the prices can be felt clearly for the  year 2014.

Due to excess rain, and snow balls, Quality is a major worrying factor, among the entire Kabuli Chick peas exporting community in India, everyone is complaining for the High % of Stained peas and damaged chick peas . which contribute a major portion of the total permissible defect level for exports parameter.

Total permissible defect for exports of higher size ( 40/42, 42/44,44/46 count) is allowed 4% . out of which Stained and Damaged chick peas are contributing almost 2.25% and other parameters  like damage. Discolor, smooth, aborted. Green. Are contributing just 1.75%.

In previous years, stained and damaged used to be just under 1% of the total defect.

Buyers trading from India, should keep in mind the fact, that Indian crop witnessed heavy rainfall just before the harvest, so they might have some quality issues with the Indian Shippers, for the Kabuli Chick Peas, for which the supplier should not be made responsible, as no one can control the weather damage products,

Looking up the limited use of technology in grading and cleaning process . Indian Exporters have big task to face in coming days

Traders should trade very carefully for Kabuli chick peas from India, for these season . With only trusted and known sources, to make things easy

It is expected that from month of April there should be fresh demand from Middle east sectors, for Ramdan Festival, especially, and markets should get a good support, from buying side,

Also the arrivals in India should dry up. Compared to previous years in same month due to low production. Which will keep the prices on a higher level.  Other  pulses in India like pigeon peas. Black mapte, Green Mung, Masoor are all trading at higher levels

Prices of beans in china , and elsewhere are also firm . So speaking fundamentally . it will not be easy for buyer to divert from Kabuli chick peas to other alternative beans , pulses or lentils

Market should remain strong, In Kabuli chick peas in coming months, and we might see , a very interesting trading month coming ahead