(Resource News International) — Cash bids for both large green and red lentils in Western Canada have been continuously strengthening over the past month with strong demand from the export sector providing the firmness.
“Despite the large crops in Canada, the demand coming from importer India has been causing values to strengthen,” said Mike Jubinville, a market analyst with ProFarmer Canada in Winnipeg.
Production of India’s summer crop, kharif, was affected by dryness while India’s winter crop, rabi, still remains a question mark, he said.
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The reduced production of these crops will cause India to increase its imports of both green and red lentils from Canada.
“I now expect India to import around 1.2 million tonnes of large green and red lentils from Canada during 2009-10,” Jubinville said. That would compare with 972,000 tonnes during the 2008-09 season.
Producers also remain reluctant sellers and part of the steady rise in cash bids is to stimulate movement of the commodity, he said.
There were predictions that cash bids for green and red lentils could still rise by another two to three cents a pound before the demand is satisfied.
Cash bids for No. 1 Laird lentils delivered to the elevator, based on data from Prairie Ag Hotwire, currently range from 32 to 37.5 cents per pound in Western Canada and for No. 1 Estons from 27.5 to 29.5 cents. No. 1 red crimson lentils ranged from 26 to 32.8 cents per pound.
At the end of October, bids for No. 1 Laird lentils were 28 to 31.8 cents, No. 1 Estons 23 to 26 cents, and No. 1 crimsons, 26 to 28 cents.
