Lower Pulse Prices Inevitable
CHANGCHUN - Sep 1/15 - SNS -- Unchecked, bearish sentiment in crude oil, grain and oilseed markets will force prices for pulses significantly lower in 2016.
This is a simple reflection of the fact that pulses are linked to the fate of grain and oilseed markets. Expectations of both consumers and producers are strongly influenced by the cost and income relationships between commodities.
This is at the root of anxiety felt by many delegates attending this year's China Pulse Import and Export Industry Conference in Changchun.
Oil prices have trended lower since June of 2014 when Brent crude oil averaged U.S. $108.37 per barrel. They reached a low of $47.45 in January and managed to rebound to $62.50 by June, before resuming their downward trend.
Markets are influenced by China's slowing economy and the increased availability of domestically produced oil in the United States along with the unwillingness of OPEC states to trim production. Part of the problem faced by oil is that frackers in the United States have managed to cut production costs by a third, allowing them to keep pumping oil despite lower prices.
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