Pulse weekly outlook: Peas, lentils see some strength

Lentil trade watching India

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Published: September 29, 2020

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MarketsFarm — Canadian pea and lentil markets have shown some post-harvest strength in recent weeks, with good offshore demand providing support.

“On the yellow pea side, it’s China, and on lentils, it’s basically India,” Marcos Mosnaim, of Globeways Canada, said of the strength in both markets.

Yellow peas are currently trading as high as $7.50 per bushel, while large green lentils are in the 30-34 cents/lb. area, according to Prairie Ag Hotwire data.

Mosnaim was uncertain if the strength would be sustainable, but said there could be more improvement if farmers are able to hold off on sales.

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“It will depend on what India does,” Mosnaim said. The major pulse-buying country has temporarily lowered tariffs on any lentils arriving from destinations other than the U.S. before Oct. 31, but anything Canada ships now would not meet that deadline.

The size of India’s own crop also remains to be seen.

“If India does not come to the market, there are a lot of lentils out there,” Mosnaim said, pointing out that Canadian supplies would be large without that demand. On the other side, “if India does come to the market, there aren’t a lot of lentils out there.”

In addition to the Chinese demand for peas, increased demand from the pet food market has also underpinned pea prices, said Mosnaim.

— Phil Franz-Warkentin reports for MarketsFarm from Winnipeg.

About The Author

Phil Franz-Warkentin

Phil Franz-Warkentin

Editor - Daily News

Phil Franz-Warkentin grew up on an acreage in southern Manitoba and has reported on agriculture for over 20 years. Based in Winnipeg, his writing has appeared in publications across Canada and internationally. Phil is a trusted voice on the Prairie radio waves providing daily futures market updates. In his spare time, Phil enjoys playing music and making art.

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