CNS Canada –– Canadian lentil acres are expected to rise considerably this spring, with most of the increase in red lentils, according to industry participants. While the acres are going up, the opposite is likely in prices.
“Everybody is looking for an increase (in lentil acres),” said Darren Lemieux of Simpson Seeds at Moose Jaw, Sask. Red lentils would see the biggest increase, accounting for about two thirds of the country’s total lentil production, he said.
Large green Laird varieties will also be up, he said, but to a lesser extent.
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“The high prices for reds and large greens, and the poor prices of other commodities, are the reason for driving the acres up,” he said.
Lentils are “a clear winner,” said David Nobbs of CanPulse at Kindersley, Sask., adding lentils would take some area away from both peas and canola this spring.
Red lentils mature quicker than green lentils and also have good disease resistance, said Lemieux. He noted red lentils fared better than greens in 2014, as most of the crop was already harvested when poor weather hit in the fall.
Canadian farmers planted 3.1 million acres of lentils in 2014, according to Statistics Canada data — the country’s second largest total lentil area on record compared to the 3.4 million seeded in 2010. Looking ahead to the 2015-16 season, trade guesses generally range from about 3.5 million to 3.8 million acres.
Some old-crop red lentils are still trading at 35 to 36 cents per pound, but buyers are now generally holding out for new-crop supplies, which are about 10 cents per pound cheaper, said Nobbs. Movement on green lentils has dried out, he added, with very few supplies left to move.
Looking ahead, Canada has customers for green lentils all over the world, but for red lentils the two main buyers are Turkey and India, he said.
“Demand is decent in India, but is to be determined in Turkey,” he said, adding that Turkey’s own crop looks good for the time being.
Lemieux said India’s red lentil crop is also looking good this year, with production expected at about 500,000 to 600,000 tonnes. However, the country needs about one million to 1.1 million tonnes and will still be importing from both North America and Australia.
From a pricing standpoint, if Canadian acres are up and yields are average, “20 cents is more likely than 30,” said Nobbs. “It will purely come down to Canadian weather… it will be a ‘made in Canada’ price next fall.”
— Phil Franz-Warkentin writes for Commodity News Service Canada, a Winnipeg company specializing in grain and commodity market reporting.
