MarketsFarm — Just like many other crops in Western Canada, lentil production was cut sharply due to this year’s drought.
Canada’s lentil crop was reduced by 37.2 per cent to 1.802 million tonnes for the 2021-22 marketing year, according to Agriculture and Agri-Food Canada’s (AAFC) principal crop estimates from Friday. The total represents Canada’s lowest lentil yield since 2012-13 (1.538 million), and the drought did not discriminate by certain kinds.
“In general, the whole crop was smaller,” said Marcos Mosnaim of Export Packers at Brampton, Ont.
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Nearly all lentil prices in Western Canada are steady to 10 cents/lb. lower over the past month, with the only exception being two types of Richlea lentils, according to Prairie Ag Hotwire. However, prices over the past year have risen by between 15 and 55 cents/lb.
Mosnaim believes lentil producers covered short positions, pushing prices up and causing overseas markets to take a pass on purchasing higher-priced shipments.
“Destination markets never really accepted these higher prices. Although some trade happened…destination (markets) has been struggling (to buy) these lentils (at these levels),” he said.
“When you start seeing prices coming down, it’s because…when the price of the farmer doesn’t work at destination, you don’t buy. Nobody’s betting against the farmer and that’s making the market (stay put).”
Canadian lentil exports will be less than 2020-21’s totals, but the decline will not match the drop in production. AAFC estimated that 1.9 million tonnes of lentils will be exported in 2021-22, 18.3 per cent less than the previous year (2.326 million).
But despite a decrease in domestic usage, ending stocks are projected to be 50,000 tonnes, less than one-eighth of the 406,000 tonnes in 2020-21. However, Mosnaim insists Canada won’t need to import large quantities of lentils to increase supply.
“I’ll guess prices will stay stable until probably the New Year. It may come down a bit,” he said. “It will all depend on the farmers. Farmers will need money and they’ll need to sell…We’ll have to wait until January/February.”
Statistics Canada will release its next principal field crop report on Dec. 3.
— Adam Peleshaty reports for MarketsFarm from Stonewall, Man.
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