Pressure on lentil prices in Canada due to better condition of new crop

20-Jun-2024 05:01 PM

Winnipeg. Lentil sowing has been completed in Canada and due to favorable weather, its prices have started coming under pressure due to better condition of the crop.

The stock of green lentils of the old crop has decreased significantly and buyers are not getting its stock in sufficient quantity. Some buyers are showing interest in it.

The price of green lentils (small) of the upcoming new crop is seen between 46 to 49 cents per pound. However,

some stock of thick (large) green lentils is still present with the producers and traders and it is also being traded in limited quantity. But the number of buyers contracting more than one or two loads is not high. Its price is being said to be around 75 cents per pound.

Although lentil sowing has been completed in Canada, but the buyers are confused as the final and clear data of the area has not been revealed yet.

It would have been easy for the buyers to make a rough estimate of production based on sowing area and weather and make a purchase strategy accordingly. However,

forward contracts for the purchase and sale of lentils for the next year's movement have also started, while forward deals are already being made for delivery till the end of the current year (December 2024).

Canada remains the largest producer and exporter of lentils, but it may face a tough challenge from Australia on the export front as production there is expected to be equal to or more than last year.

Intense competition is likely to continue between these two countries to increase market share in the largest importing country - India.