FAO Expects Record Pulse Harvest

ROME - Jun 15/04 - SNS -- The Food and Agriculture Organization (FAO) is looking for firm dry edible bean and chickpeas markets through the last half of the 2004 calendar year, but weaker field pea and lentil markets.

Such price outlooks are a reflection of forecast global production levels for the four main groups of pulses; and the fact the world could harvest a record 60.3 million metric tons (MT) of pulses this year, up from 55.2 million last year and 56.2 million in 2002.

In its latest world food outlook, the FAO said, "Based on the current indications, dry bean prices are likely to strengthen in the second half of 2004, on account of smaller production prospects in the United States and Canada combined with low overall stock levels.

"By contrast, dry pea prices could come under downward pressure, reflecting larger supplies in several major exporting countries, namely Canada, Australia, the EU (France) and the United States. However, dry pea price movements, especially of feed grades, are also influenced by price developments in the oilmeal and livestock markets.

"As for lentils, prices are forecast to weaken in the next few months in response to larger export supplies, whereas chickpea prices might increase, reflecting both a tightening supplies in some large exporting countries and also a bigger production share of kabuli type chickpeas (larger calibre seed), which are more expensive than the desi type."

The FAO noted that during the past year, prices of several pulse types exhibited an upward trend. In the United States, prices of dry peas and lentils have strengthened since October of 2003, while those of dry beans have stagnated.

In China, customs data show an increasing trend in pulse prices. FOB export prices of adzuki beans soared by 85% since November to US$760 MT in February. During the same time period, prices rose per US$80 MT for mung and kidney beans and by US$50 for lentils. Dry pea import prices increased by US$70 to US$280 MT in February.

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