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India gives another two month extension on duty-free imports of yellow peas

There's some good news for Canada's pulse sector as industry representatives gather this week in Winnipeg for the Annual Pulse and Special Crops Convention.

India announced late last week that it would once again extend the timeline for duty-free imports of yellow peas until December 31st, 2024.

India originally lifted the duties on pea imports on a temporary basis in December of 2023 and has continued to issue temporary extensions since then, while the import duty exemption on lentils is in place through March 31, 2025.

Canada's pulse sector continues to advocate for consistent and predictable trade policies.

Information on the Pulse Canada website notes that "Canada's pulse trade suggests that it can take between 60-65 days to get product from Canada to India. While the window is narrow, Canadian farmers and exporters can deliver prior to December 31, 2024."

The Canadian pulse industry believes that trade of agricultural goods must be prioritized despite geopolitical volatility. The seamless movement of agriculture and agri-food products is central to ensuring food security worldwide and it is the expectation of Canadian pulse growers, processors and exporters that governments will separate geopolitical tension from agri-food trade during adverse situations to maintain food supply resilience. It is our belief that decoupling the pulse trade from this diplomatic tension is in the best interest of the pulse industry and consumers in Canada and India.

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Agricultural Market Update: Grain Prices, Crop Conditions, and Weather Impacts

Welcome back to our channel where we provide comprehensive updates on the latest trends and changes in the agricultural sector. This week, we're looking at significant movements in grain prices, crop conditions, and the effects of weather patterns. Let's dive into the details:

Grain Price Decline Grain prices have fallen to their lowest levels since 2020, with December corn down 4.3% and November soybeans losing 3.1%. This decline is partly due to the beneficial moisture brought by Hurricane Beryl to the Midwest, which has improved crop conditions significantly. The USDA reported that corn and soybean crops are in their best condition in four years, contributing to the downward pressure on prices.

Record Short Positions and Market Sentiment Fund traders have increased their net short positions in the corn market to a record level, with a net short of 347,000 contracts of corn. This reflects a bearish sentiment in the market, further influencing grain price dynamics. Similar selling trends were observed in soybeans and SRW wheat, indicating broad market caution.

Weather Impact and Forecast Hurricane Beryl has brought significant rainfall across Arkansas, Missouri, western Tennessee, western Kentucky, and southern Illinois, with more expected over Missouri, Illinois, and Indiana in the coming days. Despite this, the market is currently more focused on the moisture benefits rather than potential heat risks forecasted in the 6-10 and 8-14 day periods.

US Crop Conditions Corn and soybean conditions have shown slight improvements last week, with corn rated 68% good to excellent and soybeans at 68%. These are among the best ratings for this time of year since 2020, suggesting robust crop health that could continue to influence grain prices.

Winter Wheat Harvest and Spring Wheat Conditions The US winter wheat harvest is progressing well, ahead of schedule with significant portions already harvested in Kansas and Texas. Spring wheat conditions are also favorable, with 75% rated good to excellent, although there have been some declines in states like Idaho, South Dakota, and Washington. Brazil's Corn Harvest and US Exports Brazil's second corn crop harvest is advancing rapidly due to favorable hot and dry conditions, with 63% of the crop already harvested. Meanwhile, US corn shipments saw a substantial increase last week, indicating strong export demand, which contrasts with the recent drop in domestic grain prices.

Ongoing Developments Lastly, the USDA reported a flash sale of corn, with significant quantities sold to unknown destinations, scheduled for delivery over the next two marketing years. This could signal ongoing international demand for US corn despite lower prices.

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