Peas Getting Nervous
PANAMA - Nov 27/20 - SNS -- Field pea markets ended the week's trading on a nervous note against indications India's chickpea harvest will be up significantly from last year and reports of negative crushing margins in China.
The potential for a major increase in chickpea output in India limits any hope import duties on peas will be reduced next year or that tariff rate quotas will be significantly expanded.
At the same time, negative crush margins for soybeans in China could reduce the price at which peas are a competitive ingredient in livestock feed markets. Some smaller crushers are reported to be trying to "wash out" some purchase contracts from the United States, mainly because they failed to hedge purchases.
Lentils Continue to Ease
PANAMA - Nov 27/20 - SNS -- International lentil markets finished the week's trading on a mostly easier note, reflecting India's absence from red lentil markets and a seasonal slow down in green lentil sales.
Markets are also somewhat nervous about the December 3 final production estimate from Statistics Canada. It is not expected to contain major changes from the September estimate, but there could some surprises if the federal agency also releases a break down by class.
Seeding of India's rabi season lentil crop is making good progress, with the country's agriculture department reporting 1.147 million hectares was planted as of November 27, compared to 1.031 million at this time last year. Total area is on pace to advance from 1.607 to 1.8 million hectares, which could see output increase from 1.18 to 1.43 million MT.