MarketsFarm — As with so many other crops on the Prairies, production of lentils will be lower this year due to the drought.
However, MarketsFarm Pro senior analyst Mike Jubinville said the lentil crop likely fared a bit better than cereals or oilseeds.
Earlier this year, Statistics Canada projected lentil production to come at about 2.75 million tonnes. Jubinville estimated about 2.3 million tonnes will be harvested and pegged Canada’s total supply at 2.5 million to 2.6 million tonnes.
“This means somebody has got to go without,” he said, noting prices have swung quite higher over the last few weeks as the market took notice of the shortages.
Jubinville pointed out Turkey, another lentil producer, is suffering from dry conditions that have impeded its crop. India slashing its import levies from 33 per cent to 10 per cent has also added fuel to the fire for lentil prices to swing higher.
“India is still the 800-pound gorilla in the lentil market. Once they make a move like that and signal they’re going to be buying, you have this domino effect among import players,” he explained.
Over the last month, Laird lentils have climbed 14-26 cents/lb., depending on the size, with prices ranging from 36 to 61 cents/lb., according to Prairie Ag Hotwire from Monday.
Similarly, Eston lentils gained 10-11 cents to reach 31.5 to 48 cents/lb. Richleas rose 11-17 cents, at 33 to 51 cents/lb. and crimsons swung higher by nine to 19 cents, also at 33 to 51 cents/lb.
— Glen Hallick reports for MarketsFarm from Winnipeg.