Global Chickpeas End Mixed, Upside Momentum Eases in Domestic Markets

Global chickpea markets ended the week's trading on a mixed note. Canadian and Australian markets closed with a firmer undertone while Mexico was slightly easier ahead of this year's harvest and increasing new crop supplies in India. Pakistan continued to show buying interest for overseas chickpeas, seeking Desi chickpeas from Australia and small caliber Kabuli chickpeas from other origins.

In Indian markets the upside momentum eased during the week ended March 20th. The Mandi prices could sustain higher this month because of lower arrivals and robust off take in the Chana processed products like Chana Dal and Besan or the Chana flour, ahead of Holi. Ramadan season purchases had also kept prices upwards during the first fortnight of March.

 Higher prices are currently attracting government to sell chana in the mandis. There were reports of NAFED to sell chana and this pushed futures to finish the week on a softer note. The upside momentum also eased on fresh planting reports of Government’s, which conveyed the seeded area this yearincreasing to a record 11.6 million hectares, from 10.731 million during previous year.

The average output for this year is estimated near to 11.74 million MT, up from 11.35 million last year. 

We may see further depreciation in domestic chana prices during remaining days of this month because of new season arrivals and reports of a better seeding pace. However the downside shall remain capped since Ramazan season purchases may still continue for another few days.

Holi demand shall continue while new crop supplies shall not intensify till March end or April first week. Therefore buying interest amongst stockists and millers may emerge after a downward price revision this week.