The price of kabuli chana (chickpeas) in Canada is expected to soften slightly as the year progresses, according to trade analysts. This trend is influenced by several factors. Recently, prices in the Prairie division of Western Canada saw a minor decline of 0.5 cents per pound. Currently, kabuli chana prices for smaller grains (7-8 mm) range between 25.8 and 41.8 cents per pound, while larger grains (9-10 mm) are priced between 39.8 and 44.8 cents per pound.

Two main reasons are driving the softening of prices:

1. Canadian Crop Conditions: The summer heat in Canada led to smaller grain sizes for this year’s kabuli chana crop. The extreme temperatures hindered the development of large-grain chickpeas, resulting in a surplus of 7-8 mm grains but a significant shortage of larger 9-10 mm grains. This imbalance impacts prices, as larger grains typically command a higher price due to their scarcity, with global markets often producing smaller-sized chickpeas.

2. Global Harvesting Patterns: The global harvesting period for kabuli chana runs from August to November, with the bulk of the crop coming from Turkey, Canada, Russia, and the U.S. Argentina's harvest is just beginning and is expected to sell its produce aggressively, adding downward pressure to Canadian prices. Furthermore, as the Christmas season approaches, producers in Canada aim to sell quickly to capitalize on the seasonal demand.

Additionally, with 70% of the kabuli chana crop being harvested globally in the late summer to fall, and the remaining 30% harvested later in countries like India and Mexico, supply dynamics are also contributing to the price shifts.

Overall, the combination of a smaller-than-usual Canadian crop and the global supply situation is expected to keep kabuli chana prices relatively soft into the next year.