Canada’s pulses seen too pricey for India

CNS Canada –– Problems with India’s own pulse crop production are lending some support to lentil and pea prices in Canada, as India is a major buyer.

However, the firm Canadian prices may have more to do with domestic competition between exporters than with any increase in offshore movement, according to a pulse dealer.

David Newman, of Victoria, B.C.-area special crops marketing firm Commodious Trading, said that while there may be demand from India, Canadian lentil and pea prices are high enough that they should ration any actual export movement.

The larger players are positioning themselves to secure product from farmers in order to maintain their market share, according to Newman.

While the demand is there, he said, replacement costs were likely higher than what overseas customers were willing to pay.

In addition to India, other global demand centres — including China, the Middle East and North Africa — were also not showing enough demand to warrant rising prices.

Some buyers, Newman said, were also now likely waiting on production out of Australia and Argentina.

With the global demand being rationed, farmers are still in a strong position as grain companies likely can’t buy anything for cheaper than current values, he said.

However, any further advances in peas or lentil bids are also unlikely.

Phil Franz-Warkentin writes for Commodity News Service Canada, a Winnipeg company specializing in grain and commodity market reporting. Follow CNS Canada at @CNSCanada on Twitter.

 

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