Pulse weekly outlook: India market likely pushing up prices

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Published: October 22, 2019

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Green lentils. (Savany/iStock/Getty Images)

MarketsFarm — Faced with weather concerns surrounding its pigeon pea crop, India has been very likely buying lentils from Canada, said MarketsFarm analyst Mike Jubinville.

Over the last month, prices for large green lentils have jumped 25 per cent because of issues with pigeon peas, said Jubinville. Green lentils can be substituted for the pigeon peas.

“That crop is grown during the summer and that got off to a dry start,” he said. “The monsoons came late and now into the harvest season, the monsoon rains aren’t stopping.”

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Just in the last few weeks, prices for large green lentils rose from 19-20 cents/lb. to 24-25 cents. “Once India starts buying, other buyers take note,” Jubinville said.

However, he saw any further upside to large green lentils being limited at the moment as the crop from the Black Sea region, especially Russia, is about to enter the global market.

The current situation in the Middle East, particularly with Turkey having invaded northern Syria, is cause for concern. Geopolitical uncertainty in the region, which consumes large amounts of lentils, could limit any further gains, he said.

Also, the Canadian harvest has been a difficult one this year with cold, wet conditions causing delays. In turn, that’s created concerns over the quality of Canadian-grown lentils, Jubinville said, noting later in the year there could be more upward movement.

— Glen Hallick reports for MarketsFarm, a Glacier FarmMedia division specializing in grain and commodity market analysis and reporting.

About the author

Glen Hallick

Glen Hallick

Reporter

Glen Hallick grew up in rural Manitoba near Starbuck, where his family farmed. Glen has a degree in political studies from the University of Manitoba and studied creative communications at Red River College. Before joining Glacier FarmMedia, Glen was an award-winning reporter and editor with several community newspapers and group editor for the Interlake Publishing Group. Glen is an avid history buff and enjoys following politics.

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