Ample rains and high prices has resulted in large increases in Indian pulse plantings, according to data released by the agricultural ministry last week.
So far, Indian pulse plantings are 39 per cent up on last year, according to the ministry. They said higher prices of pulses has seen record pulse plantings of 13.6 million hectares, which is a quarter more than the five year average of 10.8 million hectares.
Plantings are nearing completion with more than 93pc of the intended rice, coarse grain, pulses, oilseeds sugarcane and cotton already complete.
In the past two years, consecutive droughts in India have seen significant declines in their domestic pulse production and record large imports, pushing prices to record levels. The agriculture ministry expects production of pulses to come in at 20 million tonnes in 2016-17, over 21pc more than the 16.47 million tonnes estimated for 2015-16.
Record high pulse prices have also seen sharp increases in plantings in Australia and Canada. Canadian lentil plantings have jumped by as much as 45pc while and forecasters are saying that Australian chickpea plantings are 50pc larger than last season.
Expectations of ample supplies of chickpeas and other pulses is evident in the local market.
Premiums for old crop chickpeas have disappeared with exporters keen to ship before the Indian crop is harvested. September and October delivery chickpeas are currently $820 CQ or Brisbane ports. The price for deliveries that extend into November are $30 a tonne lower.
Chickpea harvesting in central Queensland is expected to start in early September while southern Queensland won’t start until early October.
Southern pulse markets, where harvesting won’t start until late October or November remain undefined, with importers waiting to see how the Indian crop progresses before making any purchases.
Growing conditions across Queensland are close to optimal which will assure excellent winter crop yields. Widespread finishing rains are forecast for southern Queensland this week, with most areas expected to receive a general 20mm to 40mm of rain.
Prospects of another bumper grain harvest put further pressure on local grain prices last week. Stockfeed wheat into the Darling Downs fell by $7 to $223 while F1 feed barley was down $10 to $212 delivered. Sorghum fell by $7 to $203 delivered Darling Downs.
Farmers are saying they cut back on sorghum plantings when seeding gets under way in spring because of the current low prices.
New crop APW multi grade bids into Brisbane fell by $7 to $235 last week.
A global abundance of wheat continues to pressure international wheat prices, but a shortage of higher quality wheat could result in some potentially good protein premiums, if the harvest permits.
US wheat futures edged higher, helped by solid export demand for their higher quality grades such has Hard Red Winter and Hard Red Spring wheat.
Russia’s wheat harvest is at the half-way market, and bumper yields support forecasts for a massive crop. Yields are currently running 13 per cent higher than last year when they harvested a crop of 61 million tonnes.