Earlier this year, StatCan projected some 400,000 planted acres of chickpeas in 2024/25. The year before about 315,500 acres were seeded.

The vast majority of chickpeas are grown in Saskatchewan, with StatCan expecting more than 360,000 acres, up from the 272,200 in 2023/24. The remainder of trackable amounts will be planted in Alberta at around 39,700 acres, down from the 43,300 put into the ground last year.

“The general consensus is acres are up,” Young stated, noting StatCan’s data has been fairly accurate when it comes to chickpeas, with an acceptable margin of error.

He also expects production to increase due to the good conditions on the Prairies although the cool, wet weather has delayed chickpea development by about a week. He said the earlier planted chickpeas should begin to flower around the Canada Day long weekend.

“It’s not concerningly late by any means. It’s what I would call the late end of normal crop development-wise,” Young said. “The fear is that when we turn into July that there will be some hail.”

Should that occur, Young pointed out that would further delay the chickpeas by about an additional week or two. In turn that would raise the possibility of frost damage.

“An early September frost would certainly downgrade the quality,” he noted.

In the meantime, Young said chickpea growers have been taking good care of their crops with already one or two applications of fungicide to ward off the potential for diseases.

“The anxiety when you grow chickpeas begins when you treat your seed and it doesn’t stop until you cash your cheque,” Young joked.

Chickpea prices have dipped according to Prairie Ag Hotwire. The Kabulis regardless of size have shed a penny, with the largest sizes going for 41.8 to 44 cents per pound as of June 24. The B-90’s were also down a penny at 26.5 to 27.8 per cents/lb. while the Desi number ones were steady at 27.8 to 33 cents/lb.

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“We have good moisture and guys are putting stuff in the ground,” said Jake Hansen, general manager of Saskatchewan’s Mid-West Grain. He estimated that about 80 per cent of intended chickpea acres were in the ground on May 21, roughly double the planting progress as of the provincial crop report for May 13.

The rains may have caused some seeding delays but will be welcome overall after the drought conditions in recent years, according to Hansen. He added that disease was not yet a concern.

Hansen estimated total Canadian chickpea seedings in 2024 at 350,000 to 400,000 acres, which compares with the 316,000 acres seeded in 2023.

From a pricing standpoint, kabuli chickpeas are currently trading in the mid-30s to high-30s cents per pound range, with some new crop opportunities around 40 cents per pound.

While farmers would prefer higher bids after kabulis had traded over 50 cents per pound earlier this crop year, Hansen said the market was likely stable around current levels for the time being.

Anecdotal reports out of India point to a 10 per cent reduction in their desi chickpea crop this year, which will have a supportive influence on the kabuli market as well, according to Hansen. However, chickpea area in the United States is forecast to be up on the year while Turkey was expected to have maintained its acreage base – limiting the upside potential in the global market.

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Most chickpea varieties dropped three cents per pound during the week ended March 22, reducing increases from last year, according to Prairie Ag Hotwire. Statistics Canada projected 400,311 seeded acres for 2024, 84,015 more than last year.

Jake Hansen from Mid-West Grain Ltd. in Moose Jaw, Sask. said uncertainty over yield and quality from India, one of the largest buyers of Canadian chickpeas, is responsible for the recent weakness in the market.

“It’s always difficult to judge what India is actually producing. Typically speaking, this time of year is when India comes to market with their chickpea crop,” Hansen said. “There always seems to be a little bit of a lull this time period because India’s production is hitting the market.”

He added that he has seen prices fall by more than three cents/lb. recently.

“(One company) was offering 54, 55 (cents/lb. for Kabuli chickpeas) a month ago, maybe five weeks ago. We just recently bought (product) at 48, 49 cents delivered,” Hansen said. “The market’s soft. It’s quiet.”

While domestic movement of chickpeas are faring well, exports are “falling off a cliff”, according to Hansen.

“We’ve got two containers here, two containers there, etc. all through the spring and summer, but exports have significantly slowed down,” he said.

Looking ahead, Hansen warned that any excitement about more chickpea acres this spring in Western Canada may be tempered by quality issues.

“Our thought process is there will be more acres planted in 2024 … But if the yield isn’t any better, or it falls off because of a drought and it’s worse, then who’s to say we don’t have similar quantities in the grain bin than we did in 2023?” Hansen asked. Agriculture and Agri-Food Canada is projecting a miniscule 5,000-tonne carryout for chickpeas at the end of 2023-24, which compares with 28,000 tonnes the previous year.

He said that timely rains in April and June, as well as a dry fall will create ideal growing conditions for this year’s chickpea crop.

“It’s going to be a waiting game on Mother Nature (as to) what she gives us,” Hansen said.

—Adam Peleshaty reports for MarketsFarm from Stonewall, Man. 

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The stability is mainly due to a global supply glut, with large carryout volumes from previous years combined with high acreage numbers in Canada, the U.S. and Australia.

Statistics Canada estimated Canadian producers will dedicate just over 300,000 acres to chickpeas, nearly double from two years ago. However, 2019 acres are down about 32 per cent from 2018, in which 442,900 acres were planted.

“All in all, inventories have gone down a bit, but with a new crop coming in there’s going to be more than substantial amounts for sale worldwide,” said Darwin Hamilton of Kalshea Commodities in Winnipeg.

Chickpea prices are slightly higher than at the beginning of 2019, though just hovering between the 25 and 30 cent per bushel range.

Hamilton predicted prices will remain steady — largely due to the fact that India’s large market doesn’t currently accept Canadian pulses.

Late monsoon rains in India threatened the nation’s pulse crops, which provided a sliver of hope that Canada could crack back into the market.

However, as monsoon rains have settled into India, “the outlook to move volumes into that market doesn’t look that good again,” Hamilton said.

— Marlo Glass writes for MarketsFarm, a Glacier FarmMedia division specializing in grain and commodity market analysis and reporting.

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Seeded acres for chickpeas almost quadrupled between 2017 and 2018, rising from 160,000 to 442,900, respectively. Since inventory from the 2018 growing season is still high, 2019 will only see approximately 300,000 seeded acres.

“A lot of farmers grew chickpeas in 2018, because we all grow on last year’s pricing,” explained Melody Ector, president of Diefenbaker Spice and Pulse at Elbow, Sask.

Prices began to decline during the 2018 harvest, and have yet to recover. Chickpeas aren’t the only pulse that is suffering — most pulse prices have declined thanks to a soured trade relationship between Canada and India.

“It’s hard for a farmer to know what to grow, because everything is down,” said Ector.

“Prices aren’t favourable for really any pulses. So you just have to pick one and hope for the best.”

Chickpeas are currently trading between 24 and 25 cents/lb., and aren’t expected to bounce higher any time soon.

Despite a weakened international appetite for Canadian chickpeas, food market trends in North America are warming up to the bean’s versatility.

Chickpea flour, a long-time staple in Indian cuisine, is a gluten-free alternative found in many popular recipes on high-profile cooking websites. Similarly, aquafaba, or whipped chickpea liquid, can be used as a vegan replacement for egg whites.

“There’s lots of research and development on pulse proteins and pulse flour, but it takes a while to develop the market,” Ector said.

“I would think it’s going to increase in popularity every year, but it’s going to take time.”

— Marlo Glass writes for MarketsFarm, a Glacier FarmMedia division specializing in grain and commodity market analysis and reporting.

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“Acres are going to be down this year because the price isn’t what it was a year ago,” said Melody Ector, president of Diefenbaker Spice and Pulse at Elbow, Sask.

Prices dropped significantly in 2018 from the 60-cent/lb. range they saw in the spring, falling by about 40 per cent after harvest, said Darwin Hamilton of Kalshae Commodities in Winnipeg.

However, Hamilton believes that despite tumultuous prices, acreage across Canada will increase.

“With all the political issues going on in the world, chickpeas are one of the few crops that are returning farmers a little more money right now,” he said.

“I would say chickpea acreage will only be up by about 10 per cent.”

When it comes to prices, because Canada produces a small fraction of the world’s chickpeas, “we’re more of a price taker or a price follower,” Ector said.

“Lots of other countries grow chickpeas, we’re just one of them.”

Current chickpea contracts are trading around the 25 cents/lb. range. Hamilton expects those prices to correct to about 35 cents, and higher next spring, though not to as high as in spring last year.

Since India placed tariffs on a host of Canadian pulses, exports to India have fallen significantly.

Hamilton predicted chickpea prices will be buoyed by the North American market, including the pet industry.

“That will cause prices to even out. If we see good-quality chickpeas, there will be an opportunity in the fall.”

— Marlo Glass writes for MarketsFarm, a Glacier FarmMedia company specializing in grain and commodity market analysis and reporting.

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However, while prices are off the highs that drove 2018 seeding intentions, they still could have some room to the upside over the next few months.

After seeding 442,900 acres of chickpeas in 2018, Canadian farmers are forecast to plant only 185,000 acres in 2019, according to estimates from Agriculture and Agri-Food Canada. While down on the year, that would still place the seeded area well above the previous 10-year average of about 150,000 acres.

Prices are well off of their highs of a year ago, which is the major factor behind the projected acreage reduction, but there could still be room for some firmness from a marketing perspective heading into the spring and summer, said Colin Young of Midwest Grain Ltd. at Moose Jaw.

Chickpeas in storage need to be checked to prevent spoilage, but can be kept indefinitely in proper conditions. Young estimated any stocks that needed to be marketed were already sold a long time ago, with producers now content to hold out for better prices.

While current pricing for kabuli chickpeas in the 27-28 cents/lb. area is a far cry from some of the bids seen over the past year, they are up from their 20-cent lows and should pencil in as a viable cropping option, according to Young.

In addition, after the large 2018 crop “there is a lot of good quality seed that’s affordable and available,” he said.

Seed cost and availability will not be a barrier to chickpea production, but lower guaranteed prices from an insurance standpoint could sway some intentions away from the crop.

Last year, farmers were guaranteed 42 cents on any shortfall in production, which won’t be the case in 2019 given the current spot market, said Young.

Lentil prices also look to be on the rise, which will see some more interest there compared to chickpeas, according to Young.

From a marketing standpoint, “at this point, everything is still hinging on the situation in India,” he said.

While India is not traditionally a large importer of Canadian chickpeas, the country can be a competitor on the export market.

India typically will keep the smaller-calibre chickpeas for domestic consumption and export the larger caliber “at significantly discounted prices,” Young said.

If India has a production shortfall, it would be less likely to export cheaply — which supports world prices. India will be harvesting its chickpea crop over the next few months, and “the situation in India is weighing on people’s minds,” according to Young.

India is a large country with many different growing regions, but the general sentiment heading into the harvest is that dry weather will cut into chickpea production, he said.

Tightness of other pulses could also put the country in a position that it would need to import lentils, which would help set the stage for a repeal of the tariffs currently limiting Canadian exports.

“I’m cautiously optimistic that the markets will remain firm, or possibly appreciate.”

— Phil Franz-Warkentin writes for MarketsFarm, a Glacier FarmMedia division specializing in grain and commodity market analysis and reporting.

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The government said Tuesday in the Gazette of India the increased tariff is to be imposed immediately, with existing circumstances making it necessary. Chickpea prices have continued to fall over the last six months, according to reports out of the country.

On Dec. 21 last year India imposed a 30 per cent tariff on imports of chickpeas and lentils, which had followed a 50 per cent tariff on pea imports on Nov. 8 — the maximum allowed under World Trade Organization rules.

The tariffs were placed in order to support Indian farmers who faced lower commodity prices following large world crops of pulses. India had a good monsoon rain this growing season and as the harvest approaches the country is expecting large crops.

The Indian government has previously said it wants to reach self-sufficiency for pulses, though many analysts have said that isn’t possible as India relies on variable monsoon rains for its growing season.

In January, Australia’s Agriculture Minister David Littleproud travelled to India to discuss the pulse import tariffs. He was able to reach an agreement with India to give Australia warning before placing future tariffs.

Canadian Prime Minister Justin Trudeau is set to travel to India Feb. 17-23 to promote further trade and investment between the countries.

There have not been any announcements on whether the trip will include discussions about the pulse industry, but the federal government has said it is working on the file.

Last year Canada exported 10,000 tonnes of chickpeas to India, according to Statistics Canada. — Commodity News Service Canada

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Very little of the crop actually falls under the top grades, however, leaving the bulk of the marketing to take place in the feed sector.

“The chickpea harvest has been an unmitigated disaster,” said Colin Young of Midwest Investments at Moose Jaw, Sask.

Dryness at seeding time was followed by unprecedented rainfall over the summer, which led to considerable disease issues and stripped away both yields and quality.

Then, to add insult to injury, poor harvest weather likely led to about 10 to 20 per cent of the seeded acres being abandoned.

Chickpeas grading No. 2 or better are commanding a premium, with prices as high as 65 to 70 cents/lb. quoted from some buyers, according to Young.

However, while southern Alberta and the US had relatively good-quality chickpeas, those crops are already spoken for and Young said “virtually none” of the remaining chickpeas fit the bill.

In the 17 years he’s been marketing chickpeas, Young said 2016-17 “is by far the most devastating quality,” with high amounts of mould a particular challenge.

Before the harvest, Statistics Canada estimated the chickpea crop at 114,000 tonnes, which would compare with 90,000 tonnes the previous year. However, with the abandoned acres and poor yields, Young estimated the crop may be only 60,000 tonnes, with half to two-thirds of that straight feed.

Speaking about his own farm, Young noted the quality ranges from “really awful-looking feed, to quite nice-looking feed.”

One silver lining is that the feed market is paying a significant premium over traditional feed prices, with feed prices in the 25-32 cents/lb. range.

“We’re selling feed chickpeas for a higher price than we were selling No. 1 chickpeas two years ago,” said Young.

Looking ahead to next year, while high prices usually encourage additional acres, the disappointing 2016 crop may dissuade some planted area.

Young also expected seed shortages would provide a natural barrier to chickpea acres.

“Canada being out of chickpeas is like the corner store being out of milk,” Young added, noting that despite the localized issues, the world market will still be set by prices in the larger-producing countries such as Russia, the U.S., Argentina, India and Australia.

While that may be the case, Young said international customers still like Canadian chickpeas and will be ready to buy again when the quality improves.

— Phil Franz-Warkentin writes for Commodity News Service Canada, a Winnipeg company specializing in grain and commodity market reporting. Follow him at @PhilFW on Twitter.

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“We’re still kind of in that phase where there’s a lot of orders trying to get filled, positions trying to get squared,” said David Newman of Commodious Trading near Victoria.

Prices have been relatively steady, Newman said, but the main driver of the market is India’s absence.

“We’ve been able to sell a little bit of stuff to a few other markets, but I think without India being able to actively participate, everything is kind of left to the wind,” he said.

There are two main reasons why buying from India has slowed as of late. For one, the country has already bought a number of chickpeas. “There’s a huge amount of purchases on the books, that’s for sure,” Newman said.

The potential for a large upcoming crop from India is also pressuring the market, he said. “Last year India was looking at a drought situation, and they bought everything we had. It was gone.”

Kabuli chickpea spot prices across Western Canada range from 20 to 53 cents per pound, depending on size and quality, according to data from Prairie Ag Hotwire.

Western Canada’s chickpea crop is in mostly good condition, after a couple of weeks of uncertainty stemming from excess moisture, Newman added.

Statistics Canada pegs this year’s chickpea production at 106,900 tonnes, compared to last year’s 83,500.

Harvest will start soon in Western Canada. Saskatchewan Agriculture’s Wednesday crop report said about one per cent of the province’s chickpeas have been combined.

— Jade Markus writes for Commodity News Service Canada, a Winnipeg company specializing in grain and commodity market reporting.

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