Long Tail to Bull Market
PANAMA CITY - Oct 7/15 -- SNS -- The 2015 calendar year is witnessing international pulse markets register their strongest price performance relative to grains and oilseeds in history. This has important implications for pulse production in 2016 and the way markets will perform during the last half of the coming calendar year.
During the three years spanning 2012 through 2014, values for world pulses averaged 19% lower than the world cereals index and 26% lower than the FAO's world oilseed price index. So far in 2015, STAT Communication's export-based world pulse price index has been 16% higher on average than the FAO cereal index and 6% above oilseeds.
This year's shift affects the thinking of both farmers and consumers.
Farmers tend to increase land in those crops which generate the best returns. With pulses generating higher than normal returns relative to grains and oilseeds, land in pulses is expected to undergo a general increase around the world.
Consumers view prices from the opposite perspective, expecting the commodity groups to maintain price relationships. When they do not, this can see demand shift between field crops.
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