CNS Canada — Price-wise, large green lentils have been outpacing their red counterparts, due to poor acreage and a general disappearance of the crop, according to an industry specialist.
Delivered No. 1 large green or Laird lentils are between 38 and 47 cents per pound, according to Prairie Ag Hotwire. Those prices would bring farmers a pretty good return, if they were growing any.
“No. 1s are pretty much non-existent. You could post a 75-cent price on them and it wouldn’t matter,” said David Nobbs, general manager at Canpulse Foods.
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But the supply squeeze isn’t limited to No. 1 lentils. Delivered No. 2 Laird or large green lentils are pegged at 29 to 43 cents per pound, but No. 3 lentils are selling between 16 and 30 cents per pound, according to Prairie Ag Hotwire.
“I think the trade is scared that some of their forward sales couldn’t be covered with the quality that they needed for their buyers,” Nobbs said.
However, those higher prices come with a trade-off, he said; they’re less appealing to foreign buyers.
Producers, he said, are waiting to see if Algerian and Colombian markets will buy at current prices, which moving forward will be a market-driver.
Global currency values could also play a role in how lentil prices move.
A lower Indian rupee could put a bearish lid on large green lentils, Nobbs said — but that doesn’t mean he’s willing to rule out export demand.
“The fact that we’re not seeing demand today doesn’t mean that it’s not coming.”
Red lentil prices aren’t as high as large green, but they’re steady.
Delivered red or crimson lentils are selling between 23 and 38 cents for No. 1, 2, and 3. While acres were up on the year, the trade anticipated a better supply. “And harvest was delayed,” Nobbs said.
Last year’s production for all lentils was at 2,082,800 tonnes, up from this year’s projection of 1,987,000.
— Jade Markus writes for Commodity News Service Canada, a Winnipeg company specializing in grain and commodity market reporting.
