News Capsule: Pigeon Pea International Prices Surge, Outlook Turns Bullish for India
★ Reports of a weaker crop in African origins and rising offers from exporters are putting upward pressure on India’s import costs.
★ Mozambique’s September/October shipment offer for Gajri pigeon peas to India has risen to $800 per tonne CNF, up $45, or around 6%, from $755 on September 17. The current offer is around 11% above the four-week average of $720 per tonne.
★ Myanmar’s Lemon-type pigeon pea offer is at $910 per tonne, compared with $890 last week, an increase of $20, or around 2%. The current price is about 4% above the four-week average of $878 per tonne.
★ Offers from Malawi have recorded the sharpest increase. Prices for India have risen to $735 per tonne, up $55, or around 8%, from $680 last week. The current offer is nearly 15% above the four-week average of $641 per tonne.
★ In India, drought and water-stress conditions in major pigeon pea-producing states such as Maharashtra and Karnataka remain a concern. If sufficient rainfall or irrigation is not available in the coming period, crop productivity could be affected.
★ The new pigeon pea crop from India and Myanmar is still around four months away from the market. Until then, the domestic market will have to depend on existing stocks and imports. Imported pigeon pea prices will therefore remain an important indicator for the Indian market over the coming months.
★ If the Indian crop does not receive adequate moisture and productivity is reduced, production estimates for the new crop could come under pressure. Combined with rising international offers, this could strengthen the bullish sentiment in the Indian pigeon pea market.
★ Current international offers indicate increasing upside risks for the pigeon pea market in the coming months. However, the actual market direction will depend on weather conditions, domestic arrivals, new-crop production estimates and India’s import policy.
