(Resource News International) — Lentils are moving briskly out of Western Canada, as the large harvest has brought some much-needed supplies back into the market, according to industry sources.
“It’s very brisk in lentils right now, especially reds and large green lentils,” said Ivan Sabourin, president of pulse export company Roy Legumex Inc. at St. Jean Baptiste, Man.
High prices and tight supplies before the harvest meant that many buyers were working with empty warehouses and waiting for the new crop, he said.
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“This big crop finally came to market,” and is now moving with very good volumes, said Sabourin.
Les Aubin of Walker Seeds at Tisdale, Sask., was also noticing an increase in lentil movement. Activity had been slow earlier in September as buyers were on the sidelines waiting for prices to drift lower, he said.
Aubin thought prices may now be nearing their bottom for the time being, which has brought some more demand into the market.
“They waited as long as they could thinking prices would come down, and they have, so now they are taking in product as much as they can,” Sabourin added.
Aubin and Sabourin both noted that the timing of the Islamic month of Ramadan this year, which ended in mid-September, may have limited some of the post-harvest demand. The ending of Ramadan has also coincided with the increase in lentil movement.
Canada is the only country with any significant exportable lentil supplies right now, which should be supportive for prices over the next couple of months, said Aubin. However, he thought there was more downside potential, looking farther out.
Aubin noted that Canada grew 300,000 more tonnes of red lentils this year than in 2008, which means the country will have large supplies to move. Also, Australia could also be on pace to have a larger crop, as new-crop offerings at lower prices are already being reported from that country.
Australia will start to harvest its crop in late November, which should create increased competition for Canadian exports, said Aubin.
Production in India will also play a role in determining the direction lentil prices take in Canada, Aubin said. If India has a better crop this year, the demand from that major importer could be down.
While the lentil business has picked up in recent weeks, the same can’t be said for edible peas. Aubin said cheaper offers from the U.S. were limiting the demand for Canada’s crop.
India was in the market tendering for yellow peas recently, but at prices too low to generate any interest from Canadian suppliers, he added.
