Australia: Markets in doldrums as harvest gathers pace

Australia’s pulse harvest is gathering pace, with northern crops on track to deliver average or better yields for chickpeas and faba beans, and lentil harvesting just getting starting in the south amid mixed conditions.

Markets for all three pulses remain depressed due to heady competition from Canada on lentils, and limited interest from India on chickpeas and Egypt on faba beans respectively.

Because of the relatively low prices, off-the-header sales of chickpeas, faba beans, and lentils are shaping up to be well down on last year, with barley, canola and hay expected to be more attractive options for prompt sales.

All prices quoted are in Australian dollars per tonne unless otherwise stated.

The November-December delivered Brisbane market for bulk chickpeas is currently quoted at around $600/t, down $30/t over the past month.

Just back from a trip including crop inspections in the Moree and Goondiwindi districts, Unistar Grains director Sanjiv Dubey said the chickpea harvest in both regions was expected to kick off before the month is out.

He said good yields from a healthy crop were expected, but prices and markets were flat.

“The price remains constantly low,” Mr Dubey said.

“Growers are not very happy with prices.”

At around $500-$510/t on farm, chickpea prices are close to half their levels of last year, when India was buying hand over fist to get as much through customs as possible prior to its tariff-free period ending on March 31.

“Given the wheat prices and barley prices all being very low, I think there is going to be some selling pressure with chickpeas.”

Growers are likely to store a large amount of their chickpeas on farm in the hope that spikes in the market appear in coming months.

Demand from Pakistan has been steady, buying from Bangladesh is expected, and India is also in the market.

“They have bought because, despite the 10pc tariff, at these prices there is going to be some demand,” Mr Dubey said of the Indian market.

Indications are that India has bought two or three bulk consignments of new-crop chickpeas, including part of Townsville’s first cargo.

ABARES estimates the current chickpea harvest will produce 2.1 million tonnes (Mt), down from last season’s record 2.3Mt.

“You rely on India to take a chunk of that to liquidate the whole crop.”

Harvest is over in North Qld, and is well advanced in Central Qld, but is yet to ramp up on the western Downs of southern Qld, and in northern NSW, where the bulk of the crop is grown.

Lentil prices have eased by $10/t over the past month to around $585/t delivered port in Victoria, and $600/t in South Australia.

ETG Commodities pulse trader Todd Krahe said some forward selling of lentils was being seen by SA growers, but Vic ones seemed less likely to sell for cash at harvest.

“They’re all busy preparing to store on farm,” Mr Krahe said.

Last year, lentils were a major cash crop for Vic growers, but the much lower relative price has made off-the-header sales look unlikely.

“They might only sell 10pc at harvest.”

“Barley seems like it’s becoming the cash sell.”

After last year’s challenging season in SA especially, a greater proportion than normal of cereals is being cut for hay to support the buoyant livestock market and restock sheds.

Mr Krahe said seasonal conditions were also pushing more hay than expected at planting time into the cash market.

“A lot of wheat is being cut for hay around the Wimmera; it’s been dry and we’re heading for a late finish.”

Lentil yields are on track to be average for growers in the typically higher-rainfall regions of Vic and SA, and those crops have benefited from rain in the 24 hours to 9am today.

In Vic, registrations include: Horsham 17mm; Murrayville 11mm; Nhill 16mm; Rupanyup 10mm;

In SA, registrations in the 48 hours to 9am today have gotten up to 25mm, and more in places, which will help pods fill in green crops.

Harvesting of Mallee crops is expected to start on most farms by the first week in November, and has already started in SA’s northernmost cropping areas.

“The Wimmera harvest could be a month off.”

ABARES forecasts the upcoming lentil harvest will produce 1.7Mt, which on top of Canada’s large crop, means little upside can be seen on lentil prices in coming months.

“When Australia and Canada have big crops, it’s a fight to the bottom.”

New-crop faba beans are trading at around $370/t delivered Wimmera packer.

“That’s not traditionally a terrible price for fabas,” Mr Krahe said.

It reflects some underlying domestic stockfeed demand centred on strong lamb prices, but very little export interest from Egypt, the world’s major importer of faba beans.

Most of the south’s new-crop faba beans will come from higher-rainfall areas, namely the Western District of Vic, and SA’s South East.

The northern market is much weaker, based on the big crop in southern Qld and the northern half of NSW, where domestic demand is seen as limited.

Delivered Downs packer prices are around $320/t, and the bulk market delivered Brisbane is yet to develop.

Tags: pulse, Australia, harvest, prices, chickpeas, yields, crop, lentil, faba beans