Lentil prices soften in Canada due to weak demand from importing countries

24-Oct-2024 08:47 PM

Saskatoon. Due to weak demand from some other importing countries including India, the price of lentils in Canada has softened by 1-2 cents per pound compared to last week.

The biggest problem is the increasing uncertainty towards India as relations between the two countries have come below normal levels.

India is the largest buyer of Canadian lentils, so it is natural for the weakening of demand here to affect the Canadian market.

Apart from this, the impact of the new production data released by the Department of Agriculture of Saskatchewan and Stats Can is also being seen on the market.

The average yield rate of lentils in Saskatchewan, Canada's most prominent agricultural producing province, has been reduced by 1.6 bushels per acre, due to which it is being estimated to be around 20 bushels per acre. Crop harvesting and preparation has already been completed.

On the other hand, Stats Can has slightly reduced the estimate of the final outstanding stock of the 2022-23 season.

Green lentil stocks are estimated to be in the most complex position, while the supply and availability situation of red lentils is relatively considered to be somewhat better.

The important question is whether the lower level of production and stocks will have any positive impact on the Canadian lentil market in the near future, especially considering that Indian importers may be cautious in entering into import contracts.

In Canada, the FOB farm price of large green lentils is around 60 cents per pound and small green lentils is 54-55 cents per pound, while red lentil prices are almost stable at 32-33 cents per pound. It is up 1 cent in southwest Saskatchewan.