Glacier FarmMedia – Green lentils continue to show solid premiums over their red counterparts, with prices for both old and new crop green lentils well above where they were at this time a year ago.
Spot bids for large green lentils delivered to the elevator were trading anywhere from 60 to 76 cents per pound in mid-February 2024, according to Prairie Ag Hotwire data. That compares with bids topping out at 50 cents per pound at the same time a year ago. New crop pricing opportunities are also solid, with contracts in the 50 to 57 cents per pound area well ahead of the 40 cents peer pound new crop bids on offer in February 2023.
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Meanwhile, the market on red lentils is relatively steady with year-ago levels. Current spot bids of 28 to 36 cents per pound have softened over the past month compare with pricing in the 30 to 32 cents per pound range in February 2023. For new crop red lentils, available contract opportunities are topping out at 31.5 cents per pound, only 1.5 cents above levels at the same time the previous year.
A large red lentil export program from Australia has reportedly weighed on that sector, according to a report from Agriculture and Agri-Food Canada (AAFC).
The government agency expects total seeded lentil area in the country to be up by 8.0 per cent in 2024 compared to the previous year, at 1.60 million hectares, “due to higher projected returns compared to other crops.” With a return to average yields, lentil production in the country is forecast to rise by 32 per cent at 2.20 million tonnes.
Total Canadian lentil exports are forecast to increase to 1.80 million tonnes in 2024/25, from an
expected 1.60 million in the current marketing year. However, prices are forecast to come under pressure going forward, with the stocks-to-use ratio rising from six per cent in 2023/24 to the much more comfortable level of 15 per cent, according to AAFC.
Total lentil ending stocks for 2024/25 are forecast to rise to 310,000 tonnes, from an anticipated 100,000 tonnes for 2023/24.
––Phil Franz-Warkentin is an associate editor/analyst with MarketsFarm in Winnipeg.
