“The lentils are starting to come in,” Mosnaim commented.

He noted that he had yet to hear as to the quality of those already off the fields.

Lentil combining in southeast and southwest Saskatchewan were 10 per cent complete as of Aug. 5, according to that province’s crop report. Harvesting of the pulse was six per cent done in the west-central region, while most of Saskatchewan’s lentil crop was still standing. Over in Alberta, the combining of pulses was expected to get underway this week.

Prices for Laird lentils have been hit the hardest, according to Prairie Ag Hotwire. The large green lentils lost 16 to 18 cents per pound over the course of the week ended Aug. 12. Prices ranges from a low of 29 cents/lb. delivered. for number three Lairds to 52 cents for number twos.

Also, French number one lentils were down seven cents on the week at 42.5 to 48 cents/lb. Red lentils pulled back one to four cents at 21 to 31 cents/lb.

Agriculture and Agri-Food Canada projected the 2024/25 lentil harvest to reach 2.5 million tonnes in its July report, up from 1.67 million the year before. Ending stocks are expected to jump to 450,000 tonnes versus 50,000 in 2023/24. That would see the stocks-to-use-ratio rise seven-fold to 21 per cent.

AAFC’s next report is scheduled to be released on Aug. 20. Also, Statistics Canada is set to issue its model-based estimates of principal field crops on Aug. 28.

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Delivered prices for green peas across the Prairies ranged from C$12.50 to C$14.21 per bushel as of July 26, according to Prairie Ag Hotwire. The latter price was down C$4.27 from last month but only four cents lower than last year. For yellow peas, delivered prices ranged from C$9.75 to C$11.40/bu., down C$1.60 from last month and down C$1.40 from last year.

Shawn Madsen, operations manager of Southland Pulse near Estevan, Sask., went on a recent road trip looking at fields hundreds of kilometres south of Estevan, including some in the United States. He said crops look “better than average” for the most part and he anticipates more peas to be available than in the past few years.

“It’s only natural when you see prices decline when that happens,” he added.
However, some areas were affected by the recent hot and dry conditions in much of Saskatchewan.

“There are some pockets that didn’t get as much rain (west and south of Estevan). Those producers (over there) you kind of feel for because with those prices that are declining and they don’t have much to sell, they are going to hurt the most.”

Agriculture and Agri-Food Canada (AAFC) estimated 2023-24 ending stocks for peas at 225,000 tonnes in its monthly estimates released on July 22. However, an expected 691,000-tonne rise in production for 2024-25 at 3.3 million tonnes would raise carryout to 440,000 tonnes.

Madsen said buyers are being “patient” with the new crop.

“They’ve seen this crop grow and mature and it looks like it’s going to be okay,” he said. “They didn’t want to go out and buy more in fear of paying too much. They’re watching and waiting. I think there’s going to be good demand but the market’s going to have to figure out where it looks for both the buyer and the seller.”

In drier areas of the province, some growers have already harvested their peas and the rest of the province may follow suit soon.

“We’re only probably days away from seeing a lot of combines rolling around this area,” Madsen said.

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Dennis Lange added that Manitoba has received approximately 30 per cent more rainfall than normal since May 1 and the extra moisture is already putting stress on pulses.

“Field peas, for example, in areas that have never received this excess moisture before, are already showing signs of stress conditions,” he said. “When you look at some of the other pulses, like dry beans and if you include soybeans in that mix, we are further behind as far as growing conditions. We’re about 90 per cent of our normal growing degree accumulation at this time of year. So, the dry beans and the soybeans are a bit further behind.”

The weather forecast for this week in much of Manitoba called for high temperatures exceeding 30 degrees Celsius with plenty of humidity and likely thunderstorms. Lange added these conditions could allow pulses to play catch-up.

Pea growers have started to spray to prevent mycosphaerella blight while also looking out for pea aphids. For other pulse crops, growers will start to apply fungicide and insecticide in the next few weeks.

While other pulses are behind when it comes to their development, peas are on track due to the cooler temperatures so far this summer, according to Lange. Cooler temperatures overnight have also aided in crop recovery. But now is the time for some better weather.

“I think we need to get into some warmer conditions to really help with dry beans and soybeans and get them moving along,” he said. “Considering we’re at 130 per cent of normal precipitation, we could turn the tap off for a little while just to let things recover.”

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Dry edible beans are the largest pulse crop grown in the U.S, with edible bean plantings in the major producing states at 1.359 million acres up from the March estimate of 1.316 million acres, and 15 per cent above what was seeded in 2023.

Lentil seedings are forecast at 836,000 acres, which compares with an earlier estimate of 762,000 acres and up by 53 per cent on the year.

Dry peas are forecast at 1.033 million acres, up from the March estimate of 974,000 acres and the 966,000 acres seeded in 2023.

Chickpea acres in the U.S. are forecast to increase by 35 per cent on the year, at 502,000 acres. That would be well above the earlier estimate of 429,000 acres and the largest chickpea acreage base since 2019.

Strong pricing for pulses compared to other crop options accounted for the increased seeding, according to recent comments from the U.S. Dry Pea and Lentil Council.

The U.S. data came two days after Statistics Canada released acreage data showing a similar pattern in Canadian pulse seeding in 2024. Area to all the major pulses were up from the March intentions. Total lentil area was forecast at 4.2 million acres, which would be up by 15 per cent on the year. Pea seedings, at 3.2 million acres, were up by five per cent from 2023, while chickpeas were up by 44 per cent at 454,000 acres. Edible beans were forecast to rise by 17 per cent at 371,000 acres.

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The Australian Bureau of Agricultural and Resources Economics and Sciences released its monthly supply and demand report on June 3. The report showed a 57.2 per cent increase for Australia’s chickpea production at 1.15 million tonnes in 2024/25. The country’s lentil output is to change very slightly with a dip of a mere 2,000 tonnes from a year ago at 1.61 million.

Meanwhile, Agriculture and Agri-Food Canada projected Canada’s chickpea crop for 2024/25 at 225,000 tonnes and its lentils at 2.1 million. Last year, Canada harvested 142,000 tonnes of chickpeas and 1.67 million of lentils.

With Australia being the world’s largest exporter of chickpeas, more production could affect its export program, according to Janelle Whitley, senior director of market access and trade policy for Pulse Canada.

“The impact will depend on how large Australia’s export program will be for chickpeas, and what markets will assume the larger supply,” Whitley noted.

She said Australia’s chickpea exports, more than 751,300 tonnes in 2023, are primarily focused on South Asia. Its largest customers by far were Pakistan at over 310,000 tonnes and Bangladesh at nearly 237,000 tonnes.

In comparison, Whitley said Canada exported about 219,500 tonnes of chickpeas in 2023, with the United States purchasing about 51,700 tonnes. Turkey was next at around 46,000 tonnes with the European Union at approximately 37,100 tonnes. Pakistan was fourth at 13,130 tonnes.

When it comes to lentils, Whitley pointed out the story between Australia and Canada is very different. That being India is the largest customer for both countries, from which it acquired 95 per cent of its foreign lentils in 2023.

Added to that is the Indian government has eliminated its levy on lentil imports.

“With the tariff set to zero until March 31, 2025, strong sales to India are expected and Australia and Canada will both compete for market share. According to Statistics Canada, India was Canada’s largest export market purchasing 717,850 tonnes in 2023,” she commented.

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The CGC pulled the licenses as of May 16.

“We’ve revoked Global Food’s one grain dealer license and three primary elevator licenses for their facilities in Lajord, Sedley and Zealandia, Sask., as well as two process elevator licenses in Bowden, Alta., as well as Zealandia, Sask.,” said CGC spokesperson Remi Gosselin.

The commission decision came after Global Food and Ingredients (GFI), with headquarters in Toronto, announced May 7 a “wind down” of its business operations. GFI said it cannot service its debt.

“(This) is a result of recent macro-economic events, which have caused GFI to experience challenges in purchasing adequate supplies of raw material inputs for its processing assets, which has resulted, and is expected to continue to, result in a material decline in the company’s sales and gross profit until new raw material supply becomes available from the fall 2024 Canadian harvest,” GFI said.

“Management and the board of directors have determined that these challenges will make it near impossible for (GFI) to continue to operate and service its debts, leaving no other option than to wind down its operations.”

The company purchased peas, lentils chickpeas and other high protein crops from farmers. In a financial statement released in February, GFI says it has four lines of business — Core Ingredients, Value-Added Ingredients, Plant-Based Pet Food Ingredients and Downstream Products — and ships to 37 countries around the world.

While operating, GFI manufactured pea and lentil flours, pea protein, pasta made from lentils and its own brand of pulse-rich pet food.

It had a pea processing plant in Zealandia and a pet food processing plant in Bowden.

From April 1 to Dec. 31, 2023, GFI had revenues of $76.1 million, a decline of 18 per cent from the same period in 2022.

A May 8 company news release said GFI has received letters from its secured lenders demanding immediate and full payment of the “outstanding debt balances of $14,987,992 and $6,844,973.”

The main creditors have applied to have GFI placed into receivership. On May 23 a hearing will be held to “discuss the application for receivership,” Gosselin said.

In addition to revoking its license, the grain commission has prohibited GFI from purchasing grain from farmers and trading in grain.

“In terms of security, the CGC holds a $2 million Intact insurance company payables insurance policy, which would be used to compensate producers who have delivered grain to (GFI) and who have not been paid and make eligible claims for payment to the Canadian Grain Commission.”

Grain commission staff will be visiting GFI locations in Saskatchewan to determine the outstanding liabilities to farmers.

“Our payment protection program provides … protection to producers who are eligible, by obtaining security from licensees,” Gosselin said.

“But we can’t guarantee that producers will be paid in full, if the licensee (GFI in this case) defaults on its payment obligations.”

So, if the money owed to farmers exceeds $2 million, some producers may be reimbursed less than 100 per cent.

“If the outstanding liabilities are $2.2 million, then we would pay producers back on a pro-rated basis,” Gosselin said.

“What we do know … is we have $2 million in security. We need to conduct a final audit to determine what is owed to producers.”

Farmers who haven’t received payment from GFI should contact the grain commission immediately, he added.
“A claims process will begin as soon as possible.”

—Robert Arnason writes for the Western Producer from Manitoba

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Dale Risula said most of Saskatchewan is on the drier side, although not every area is struggling with a lack of moisture. He added that most parts of the province are set to start seeding in the coming weeks, if they haven’t already.

“We’ll probably need some moisture over the next few weeks once seeding is underway to get things going and to sustain the growth that comes from germination and emergence,” he said. “Right now, it’s just a little on the dry side.”

Risula said planting season in Saskatchewan typically begins in the southwest corner of the province with areas north and east soon to follow. He added that peas and chickpeas are usually some of the first crops in the ground due to their ability to withstand early spring frosts.

Statistics Canada (StatCan) expects lentil acres in Saskatchewan to increase by 5.5 per cent from last year at 3.376 million, while dry pea acres would gain 2.4 per cent at 1.634 million and those for chickpeas would rise 32.4 per cent at 360,300, the most since 2018. Risula believes lentil acres will go up, but seeded area for chickpeas will be steady to higher and those for dry peas will be lower.

However, precipitation is still needed to ensure typical yields this growing season.

“In areas where there may be enough moisture to see germination and emergence take place, it’s going to need more in order to sustain that growth. Other areas are going to be so dry, they may need some moisture to get them going,” he said.

—Adam Peleshaty reports for MarketsFarm from Stonewall, Man. 

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Spot bids for green peas have topped C$20 per bushel in parts of the Prairies, while yellow pea pricing can be found in the C$14 per bushel area, according to Prairie Ag Hotwire data.

While prices may be high, there’s very few green peas trading at current levels, according to broker Levon Sargsyan of Johnston’s Grain. He said supplies were tight, while drought projections also have farmers anticipating higher prices down the road as they begin spring seeding.

For yellow peas, a pause in India’s import tariffs accounted for solid export movement in recent months. The end of the duty-free movement has been pushed back a few times already, but tariffs are set to go back into effect at the end of June. Farmers are optimistic for another extension, but it remains to be seen what India will do.

“Once there is a bit more certainty with the weather and the politics (in India) things will stabilize one way or the other,” said Sargsyan on the market direction.

New crop pricing has not seen the same strength as old crop, but a move by India to extend duty free pea movement beyond the end of June would push that demand into new crop territory, which would likely support yellow pea prices.

If the pea market holds steady over the next month, Sargsyan expected there could be a shift towards more green pea acres this year – although yellow peas will continue to account for the bulk of the peas grown in Western Canada.

—Phil Franz-Warkentin is an associate editor/analyst with MarketsFarm in Winnipeg.

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“Lairds are seeing a stock shortage in the short term, causing a surge in old crop prices, now sitting at 81 to 82 cents per pound FOB farm,” stated Sargsyan, noting below average yields in 2023 also contributed to the decline in stocks.

In the Prairie Ag Hotwire compilation of prices from across Western Canada, as of Feb. 26, Laird lentils added two cents ranged from 57 to 78 cents/lb. delivered depending on the size.

Although Eston lentils climbed higher earlier in February, most recently they gave up two cents, at 52.5 to 70/lb. delivered. The Richleas as well saw increases during the month, but stood unchanged this week at 54 to 75 cents/lb.

The red Crimson lentils slipped back earlier in February but turned steady to lower. This week, the number 3’s and X3’s were down a penny at 25 to 32 cents/lb., while the number 1’s and 2’s held firm at 33 to 36 cents.

“On old crop, red lentils are sliding back as the Australian supply/pricing has pressured the Canadian market. We see old crop red lentils offered regularly, where the producer expectation is closer to 40 cents/lb. FOB farm,” commented Sargsyan.

As February wound down, thoughts began to turn towards spring planting. Given the above normal temperatures across the Prairies this winter along with a lack of snow, there were concerns of which crops to plant.

“Although lentils are a good choice in drier areas, producers should be conscious of soil types and disease such as aphanomyces,” said Sargsyan.

— Glen Hallick reports for MarketsFarm from Winnipeg. 

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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.

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. 

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