Short-Term Price Swings Expected for Pigeon Peas

Pigeon pea stocks are currently low in India. But the influx of cheap imports from African countries to India is preventing any long-term price rise. Despite limited local supply, prices are fluctuating between USD 1,17 and 1,18 per kg, and market experts suggest traders should focus on short-term gains. Imports from countries like Kenya, Sudan, and Mozambique are stabilizing prices, ensuring that sudden spikes don't occur.

Imports from Africa Keep Pigeon Pea Prices in Check

• While the domestic pigeon pea crop is still months away from being harvested, imports from Kenya and Malawi are already arriving in bulk, priced between USD 0,95 and 1,03 per kg.
• Mozambique’s pigeon peas are also available in the market at rates of USD 1,02 to 1,03 per kg, contributing to a slight dip in container prices.
• Containers that were priced at USD 1,22 per kg in Chennai last month are now being sold at USD 1,12 per kg, showing a clear drop in demand. Interestingly, this has not drawn as many buyers as one would expect, signaling a cautious trading environment.

Local Sowing Gains Momentum as Import Prices Drop

The pulse sales have slowed both locally and internationally. But sowing of pigeon pea has surged across regions like Maharashtra and Karnataka. Despite inconsistent weather patterns, crops in these areas have grown taller than expected, some reaching over five feet. Fortunately, the rains have not caused significant damage to the crop, though some farmers remain cautious. Other pulses, including peas, have seen reduced consumption due to the decrease in prices. Which is causing a ripple effect across the pulse market.

Price Trends and Impact of Domestic Supply

In the past two years, pigeon pea production has consistently declined, depleting domestic stocks and leading to higher prices. Just last season, prices in Delhi hit USD 1,44 to 1,45 per kg, driven by a lack of supply. However, with increased imports and stricter government regulations, prices have stabilized at around USD 1,17 per kg. Although there was a brief spike to USD 1,19 per kg last week, traders expect prices to remain stable for the foreseeable future. Meanwhile, African shipments of white, red, and black pigeon peas continue to arrive, ensuring a steady supply for the Indian market.

Conclusion: Traders Should Focus on Short-Term Opportunities

Coming to the end of discussion, traders are advised to avoid long-term holdings of pigeon peas, as cheap imports and slowed demand are likely to maintain price stability. Short-term trading seems to offer the best opportunities for profit in the coming months. Prices should remain within their current range, but traders should remain vigilant as any significant changes could happen unexpectedly.





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