(Resource News International) –– Old-crop lentil bids in Western Canada are in the process of working their way down to the lower new-crop levels, according to a lentil dealer who noted new-crop prices could also see further downside.
Darren Lemieux of Simpson Seeds Inc. at Moose Jaw, Sask. said the recent economic uncertainty in Europe and the rest of the world was causing buyers to back away from the lentil market.
Expectations for large new-crop supplies and further price declines were also keeping some buyers to the sidelines, he said.
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“Right now, all signs are pointing to good production in all areas of the world, which leads to lower prices with high supply,” said Lemieux.
He noted Canadian acres are expected to be up on the year, while competing production regions including Turkey and Australia were also facing good crop prospects.
Top-end spot bids for green lentils in Western Canada can currently be found in the 23 to 27 cents per pound area, according to Prairie Ag Hotwire data, while red lentils top out around 25 cents. That compares with new-crop prices in the 18 to 21 cents per pound area.
Old-crop prices were already starting to trend down toward the new-crop levels, Lemieux said, adding that new-crop prices could move lower as well over the summer if lentil-growing regions continue to see timely rains and good growth.
Old-crop ending stocks could also weigh on values, he said, as he expected the slowdown in export movement could lead to a carryout closer to 150,000 tonnes, rather than the 70,000 currently forecast by Agriculture and Agri-Food Canada.
After being delayed by rains and snow, producers have made good progress on planting the Canadian lentil crop.
Scattered thundershowers could cause delays in some areas, he said, but expected close to 50 per cent of the crop would be in the ground by the May long weekend.
“Guys are going as fast as they can, as hard as they can.”
