Glacier FarmMedia – Recent price declines for Western Canadian chickpeas do not seem to be deterring growers from seeding the crop this spring.
Most chickpea varieties dropped three cents per pound during the week ended March 22, reducing increases from last year, according to Prairie Ag Hotwire. Statistics Canada projected 400,311 seeded acres for 2024, 84,015 more than last year.
Jake Hansen from Mid-West Grain Ltd. in Moose Jaw, Sask. said uncertainty over yield and quality from India, one of the largest buyers of Canadian chickpeas, is responsible for the recent weakness in the market.
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“It’s always difficult to judge what India is actually producing. Typically speaking, this time of year is when India comes to market with their chickpea crop,” Hansen said. “There always seems to be a little bit of a lull this time period because India’s production is hitting the market.”
He added that he has seen prices fall by more than three cents/lb. recently.
“(One company) was offering 54, 55 (cents/lb. for Kabuli chickpeas) a month ago, maybe five weeks ago. We just recently bought (product) at 48, 49 cents delivered,” Hansen said. “The market’s soft. It’s quiet.”
While domestic movement of chickpeas are faring well, exports are “falling off a cliff”, according to Hansen.
“We’ve got two containers here, two containers there, etc. all through the spring and summer, but exports have significantly slowed down,” he said.
Looking ahead, Hansen warned that any excitement about more chickpea acres this spring in Western Canada may be tempered by quality issues.
“Our thought process is there will be more acres planted in 2024 … But if the yield isn’t any better, or it falls off because of a drought and it’s worse, then who’s to say we don’t have similar quantities in the grain bin than we did in 2023?” Hansen asked. Agriculture and Agri-Food Canada is projecting a miniscule 5,000-tonne carryout for chickpeas at the end of 2023-24, which compares with 28,000 tonnes the previous year.
He said that timely rains in April and June, as well as a dry fall will create ideal growing conditions for this year’s chickpea crop.
“It’s going to be a waiting game on Mother Nature (as to) what she gives us,” Hansen said.
—Adam Peleshaty reports for MarketsFarm from Stonewall, Man.
