STAT Communications Ag Market News

Pulse Output Outside India Easing

PANAMA - Mar 5/17 - SNS -- Production of pulses outside India is expected to decline in 2017, dropping from 55.6 million metric tons (MT) last year to almost 54 million.

Most of the forecast change reflects a return to average yields in net exporting countries, something which can change depending on weather conditions during the growing season. More importantly, because seeding has not yet begun in key exporting countries, farmers could still adjust how many pulses they plant if they fear export demand will drop.

Markets are already responding to this season's massive increases in pulse production in India and expectations of reduced demand.

The world pulse price index maintained by STAT Publishing declined 11% between February of 2016 and February of 2017. During the same period, the FAO's cereal price index advanced 2%, its oilseeds price index jumped 19% and sugar 55%.

The changes are important because field crops compete with one another for land use. When the income potential of one crop rises relative to one or more crops grown in the same area, farmers have an incentive to move land from one crop to another.

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