Rising Price and Demand Risk
PANAMA - Dec 3/18 - SNS -- International pulse markets have seen fundamental changes in demand patterns during the past two years as India strives to achieve self sufficiency in domestic production.
Despite apparent success, there remains a significant risk of increased demand and price volatility in 2019 and beyond because the country's farmers remain reliant on moisture conditions during seeding and crop development.
India's withdrawal from markets and imposition of quantitative limits on imports field peas resulted in a drop in average trading levels for the commodity. That coincided with the trade war between China and the United States, which saw duties imposed on soybeans and moves by the country's livestock feed sector to diversify sources and reduce protein levels in livestock feed.
Consequently, field pea exports to China surged. Canadian shipments to China jumped from an average of 787,00 metric tons between its 2011-12 and 2015-16 marketing years to just over one million in 2016-17 and almost 1.9 million between August and July of its 2017-18 marketing year.