Chickpea prices tumbled last week after India’s decision to raise import taxes on some pulses pressured markets.
Earlier this month, India imposed a 50 per cent import duty on all dry pea imports. The move is expected to lift domestic prices in the world’s largest importer of pulses, and lift plantings which would further curb import demand in 2018.
The imposition of the import tax on dry peas has raised fears the government may also impose duties on other pulse crops. While the higher import duties did not extend to chickpeas, import prices have suffered with the softer tone in all pulses following the decision.
India also lifted its import duty on wheat to 20pc from the previous 10pc, a move that is expected to shut the door of further wheat imports in the 2017/18 season. Last week, India also raised its import duty on various vegetable oil imports, which sent world vegetable oil prices tumbling.
Softer global vegetable oil values also pressured canola markets lower.
Vastly improved growing conditions saw India harvest bumper grain and pulse crops in 2017 season, after poor crops in the previous year.
Exporter bids for chickpeas into Brisbane fell by $60 to $725 delivered Brisbane with similar declines in Central Queensland. Chickpea prices have now tumbled by more than a third from the $1100 levels seen in May.
Chickpeas have become an important winter crop for Queensland grain farmers, but the sharp decline in prices is likely to result in a contraction in plantings for the 2018 season.
Queensland’s winter crop harvest is over for another year, with farmers still counting the cost of the poor start and the dry winter. Wheat, barley and chickpea yields were very disappointing with the total winter crop harvest expected to be the smallest in several seasons.
Only 10,000 tonnes of grain were delivered into Graincorp’s Queensland grain storage network in the last week. This lifted the total winter crop harvest deliveries to 535,000t, with little more expected to come in.
Grain harvesting has wrapped up in northern NSW but it’s still going strong through southern NSW, Victoria, SA and WA.
Feed grain prices were close to unchanged last week. Stockfeed wheat was down $2 at $325 delivered into the Darling Downs while feed barley was $3 higher at $318.
Packers continue to show strong interest in high protein wheat while stock feeders are patiently building forward coverage.
Growing conditions remain ideal for sorghum which is allowing for vigorous plant growth. Temperatures have been warm, but well short of scorching. Farmers would welcome another rain to bolster moisture levels.
Australia’s Bureau of Meteorology said there was a 70 per cent chance of a weak La Nina emerging in the coming weeks, as tropical Pacific Ocean temperatures continue to cool. La Nina events are good for farmers, typically bringing above average rainfall to eastern Australia in the late spring and summer.
Unsettled weather is forecast to continue this week which widespread storms expected to more though southern Queensland later in the week.
