Pulse Premium Remains Intact
PANAMA - Feb 24/16 - SNS -- Normally, the pulse price index is discounted to grains and oilseeds. At the same time, grains and oilseeds are typically leading indicators of price direction in pulses.
But during the past year, the failure of pulses to fall back into a normal relationship to grains and oilseeds has been impressive.
Every month in 2015, the world pulse price index was at a premium to those for grains and oilseeds. This was the case again in January and will undoubtedly be true for at least the first half of 2016.
El Nino played a key role in the way pulse markets have performed. The failure of two consecutive monsoons in India and the follow-on reduction in rabi season plantings resulted in more aggressive buying from importers on the Indian subcontinent. Problems with crops in other parts of the world added additional demand.
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