Week Ahead: Kabuli Chickpea to trade firm on festive demand

MUMBAI, 24 Sep (Commoditiescontrol): Kabuli Chickpea price traded almost flat this week amid limited trade activity. However, demand is likely to improve during the upcoming festival season. Low supplies witnessed at market yards as domestic arrivals are slowing down.



Similarly, on the export front, 42-44 count Kabuli Chickpea was quoted unchanged at 1465 FOB basis for Nhava-Sheva/Mundra. Also, 44-46 count Kabuli Chickpea was offered steady at 1435 FOB basis for Nhava-Sheva/Mundra.

As per technical chart - Kabuli Chana 42-44 count Indore - More near term upside possible / we see next resistance near Rs 11,775 followed by Rs 12,325. Click here

International market update

U.S. chickpea harvest is expected to total 220,225 metric tons, up 37% from 2021, according to the USDA's latest production forecast.

Area planted for all chickpeas during 2022 crop year is estimated at 359,600 acres, up 3% from the earlier forecast but down 2% from the previous year. Area harvested for all chickpeas is forecast at 350,400 acres, up 3% from the earlier forecast but slightly below 2021.

Small chickpea planted area is estimated at 80,900 acres, down 21% from the previous forecast but up 36% from 2021. Area harvested for small chickpea is forecast at 80,200 acres, down 20% from the previous forecast but a 50% increase from 2021.

Area planted for large chickpea in 2021 is estimated at 278,700 acres, up 13% from the previous forecast but a 10% decrease over the year ago level. Large chickpea area harvested is forecast at 270,200 acres, up 13% from the previous forecast but a 9% decrease from 2021. The average United States yield is expected to be 1,122 pounds per acre, up 307 pounds from 2021.

Trend: Prices of Kabuli Chickpea are likely to trade higher on export demand due to tighter global supply, slow down in domestic arrivals, lower domestic crop, and negligible carry-over stock. Demand (HoReCa sector) is set to rise due to the festive season. In all, price of Kabuli Chickpea should move up in the near term keeping in view the new domestic crop will be available only after Feb 23, which is almost six months.

(By Commoditiescontrol Bureau; +91-22-40015513)