Lentil prices soften in Canada with the arrival of new crop
26-Jul-2024 10:31 AM
Saskatoon. With the increase in sowing area and favorable weather and rainfall conditions, there is a possibility of a huge increase in lentil production in Canada during the current season.
The Ministry of Agriculture has estimated the domestic production of lentils to jump from 16.70 lakh tonnes last year to 25 lakh tonnes this time, which is 2 lakh tonnes more than the 2022 production of 23 lakh tonnes.
Lentil exports are also expected to increase from 16 lakh tonnes last year to 19 lakh tonnes in the 2024-25 marketing season.
The condition of the crop is generally good and its harvesting is going to start from next month. With the arrival of the new crop not taking much time now, buyers are showing less interest in buying old stock as its price is running at a high level.
Due to less buying, the price of lentils has started coming down. Trade analysts are advising producers to continue selling their stock at the current price level as the market may soften further when the new crop starts arriving in large numbers.
The Ministry of Agriculture has also expressed the possibility of a decline in the average price of lentils in the 2024-25 marketing season.
The demand of importers remains somewhat sluggish. The price of small green lentils has fallen to 49 cents per pound, while the price of No. 2 quality goods of thick green lentils still remains around 70 cents per pound.
Similarly, the price of red lentils is being reported to be between 30 and 33 cents per pound. Although the condition of lentil crop is being reported to be different in different parts of Saskatchewan province,
although it is its most prominent producing province, but it certainly seems that there will be better production of lentils during the 2024-25 season as compared to the 2023-24 season.
The production of green lentils is definitely expected to increase this time in the northern continent. The crop condition in the US is good.
Canada may face tough competition from countries like Australia and Russia in the global export market of lakh lentils.