Unprecedented Uncertainty In Pulses

PANAMA - Apr 21/22 - SNS -- The war in Ukraine has created a period of unprecedented uncertainty in pulse markets. Sanctions against Russia have been compounded by the effective closure of Black Sea ports, preventing all countries in the region which rely on those ports from shipping product.

That shock to global markets amplified the impact of last year's drought in western Canada and large parts of the United States. Combined production of lentils in those two countries dropped 48% from 2020 to 1.995 million metric tons: while the field pea harvest sank 53% to 2.648 million and chickpeas 60% to just 256,000 metric tons.

International values for many pulses increased rapidly as the effect of the drought on yields became obvious. Even though carry ins from the 2020-21 marketing year were relatively high, available supplies of lentils, peas, and chickpeas fell sharply. North American lentil inventories started the 2021-22 marketing year down 39% at 2.522 million metric tons; while pea stocks sank 45% to 3.317 million and chickpeas 53% to 469,000.

Once the war in Ukraine began, grain and oilseed markets advanced sharply, adding to the firm undertone already in place in pulse markets. Pulses are facing two types of competition for the attention of farmers.