Mosnaim speculated that demand for lentils, especially green lentils, will come down after January, but cautioned “anything can happen.”

He said where prices go in the weeks to come depends on what India does.

“If India comes to the market, prices stay high. If India is not in the market, then … demand will be very sluggish,” he explained.

Prairie Ag Hotwire reported Laird and Eston lentils were steady as of Oct. 28. Depending on the size, the Lairds ranged from 39 cents per pound for the number threes to 60 cents for the number ones and twos. The Estons were as low as 33.5 to 49 cents/lb. and the large French green lentils were 43.5 to 47 cents/lb.

Meanwhile, the Richlea lentils shed one cent, with prices ranging from 35 to 55 cents/lb.

Red lentils remained unchanged at 23 to 33.5 cents/lb.

On a monthly basis, most Prairie lentils were up two to five cents/lb. depending on type and size, while the French greens gave up eight cents.

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Spot bids for large green lentils can currently be found in the 60 to 72 cents/lb. area, according to Prairie Ag Hotwire data, with new-crop contracts hitting 50 cents in some cases.

Solid end-user demand, coupled with a lack of significant farmer selling interest, was behind much of the strength in green lentils, with weakness in the Canadian dollar also supportive, according to pulse merchant David Nobbs of Purely Canada in Saskatchewan.

“Quality was really exceptional, it’s more quantity,” another Saskatchewan buyer said of the lack of farmer selling. He noted drought conditions in some lentil-growing regions had cut into supplies, with companies now raising prices to draw out more farmer sales.

Nobbs expected the supplies were ample to meet the demand going forward, but rather the general bullishness of farmers was limiting their selling.

“We’re not running out of supply, we’re not even close,” said Nobbs, noting farmers were not seeing an urgency to price at these levels. He expected there likely wasn’t much more room to the upside for green lentil prices, with more of a chance that prices would come off their highs especially as the aggressive new-crop pricing should encourage increased acres in the spring.

Red lentil prices have failed to see the same strength as green lentils, with current bids in the 36 cents/lb. area after hitting 41 cents earlier in the fall. Nobbs noted significant demand from India, but that was not translating into higher Canadian prices as Australia had a large crop providing competition.

“This is a new thing for Canada to have to compete against Australia,” said Nobbs. India will be harvesting its next red lentil crop in the New Year, he added.

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

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“We went so fast up in prices that we are getting into a pause mode,” he said.

“Buyers have to accept the new prices. So whenever you increase the price too fast, you have some pauses,” he added, noting the price will either continue moving higher or it will pull back. “Nobody knows where it can go.”

Over the last month, prices have climbed higher for most lentils. As of Monday, Laird No. 1s and 2s gained two to three cents per pound at 50-53 cents/lb., according to Prairie Ag Hotwire. However, the Laird ‘s and Laird X3s lost one to two cents over the same time at 41-44 cents/lb.

Crimson lentils pushed upward as well, with No. 1s and 2s tacking on 3.5 cents at 30-35 cents/lb. The No. 3s and X3s bumped up a penny to 26-30 cents/lb.

Eston lentils added one to three cents just in the last week, at 30.5-45 cents/lb. depending on the size.

Richleas have been the exception to the recent increases; instead they gave up three cents at 35-38 cents/lb.

— Glen Hallick reports for MarketsFarm from Winnipeg.

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New-crop pricing for large green lentils delivered to the elevator in the fall of 2023 can currently be found in the 38-40 cents/lb. range, according to Prairie Ag Hotwire data. That compares with new-crop prices the same time a year ago of about 35-38 cents/lb.

Meanwhile, nearby spot bids topping out at 50 cents per bushel are at least five to 10 cents off the spot market in early 2022.

For red lentils, current new-crop bids of 35 cents/lb. are ahead of the year-ago levels closer to 31 cents. Nearby red lentil spot bids in the 33- to 34-cent area are off the prices of a year ago closer to 40 cents.

Canada’s lentil production of 2.3 million tonnes in 2022 was much larger than the drought-stricken 2021 crop of 1.6 million tonnes, but the low carry-in supplies and solid demand projections mean that the stocks-to-use ratio is forecast to dip to only four per cent, from 12 per cent in 2021-22, according to Agriculture and Agri-Food Canada estimates.

The government department will likely release its first projections for the 2023 crop in its January report out later this month.

— Phil Franz-Warkentin reports for MarketsFarm from Winnipeg.

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“[Lentil prices] are just softer than what they were. There’s no fire in the lentil belly, that’s for sure,” Allan Johnston, president of Johnston’s Grain at Welwyn, Sask., said.

However, producers are demanding more money for their green and red lentils, he said.

“Guys are being very bullish. They want 40 cents [per pound] for their greens, 30 cents on their reds. It’s not been happening.”

Prairie Ag Hotwire cited prices for Laird lentils between 23 and 38 cents/lb. delivered as of Monday. Estons were fetching 22-34 cents/lb., Richleas 23-35, Crimsons 23-30 and French greens 26-28.

Nevertheless, Johnston said prices are good and continue to be for pulses, as well as grains and oilseeds. The big factor on the Prairies for all crops this spring is moisture.

“We just need three to four inches of rain,” he said.

At this point, Johnston stressed it’s very unlikely producers would be changing their seeding intentions for lentils, by either adding more or reducing their amounts.

“Guys make up their minds in the winter. They get their seed prepared. It’s very hard to change. You just don’t change on a dime, there are too many decisions to make and too many factors.”

The most recent estimates from Agriculture and Agri-Food Canada (AAFC) called for 4.2 million acres of lentils to be seeded in 2021, down a pinch from the previous year.

However, AAFC estimated production to decline from 2.87 million tonnes in 2020-21 to 2.7 million in 2021-22.

Statistics Canada is scheduled to release its next set of estimates at the end of this month.

— Glen Hallick reports for MarketsFarm from Winnipeg.

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“The market is not very friendly,” Johnston said, noting dry pea prices have receded as well.

“Lentil prices are still pretty good. People were getting used to them being higher and going higher,” he added.

Johnston chalked it up to the usual lull the market hits come December. “This can turn around and come back in the New Year.”

Johnston Grains posted red lentils from 25 to 28 cents/lb. depending on size, f.o.b. for November-December. Large greens were 35-37 cents/lb, mediums at 21-30 cents/lb. and smalls at 28-29 cents/lb. Feed lentils, red and green, were 18-20 cents/lb.

Prairie Ag Hotwire reported Laird lentils were steady to down one cent on the week, depending on the size, as of Monday. They ranged from 23.5 to 38 cents/lb. delivered.

Eston lentils were mostly steady, but some lost two cents, with prices at 20-30 cents/lb. depending on the size.

Richleas were on the same boat, seeing their prices remain firm to slipping back a couple of pennies. They ranged from 20 to 32 cents/lb.

Crimsons echoed that trend, holding steady to losing two cents, at 21-30 cents/lb.

— Glen Hallick reports for MarketsFarm from Winnipeg.

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“Prices are going to keep going higher,” Darcy Barie, a commodity buyer with Verdient Foods at Vanscoy, Sask., said.

Ahead of the 2020 harvest, red lentils were around 24 cents/lb.

“They’ve sort of skyrocketed,” Barie said, quoting red lentil prices around 29-30 cents/lb. Green lentils are between 38 and 40 cents/lb.

Foreign demand has been the main driver behind prices, as countries attempt to keep their pantries stocked during the COVID-19 pandemic.

“People don’t want to run out of food, so the demand is there,” he said.

For the first two months of the 2020-21 marketing year, Canadian lentil exports total just over 436,000 tonnes, according to Statistics Canada data. That’s 12.6 per cent higher than the same period last year, when lentil exports totalled approximately 387,000 tonnes.

India has recently softened long-held tariffs on Canadian pulses, which has also been supportive of lentil prices. About 30 per cent of all Canadian lentil exports have been to India.

“Indian demand is higher compared to a few years ago,” commented Barie.

At the end of October, India announced its intention to extend its current tariff reductions until the end of 2020, paving the way for more Canadian exports.

With strong export demand levels expected to sustain, some producers have chosen to hold on to their products until prices rise further.

— Marlo Glass reports for MarketsFarm from Winnipeg.

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“The summer exports were unusually good and are going fairly well right now,” said Marlene Boersch of Mercantile Consulting Venture Inc. in Winnipeg.

“People are realizing overall green lentil supplies, primarily in the United States and Canada, are tight,” she said. “People are moving to secure their supplies.”

Added to that, farmers are not ready sellers at this time, having sold large amounts during the summer, along with their wheat and canola, according to Boersch.

“They can hold as the market still had momentum.”

Laird lentil prices were at 31-36 cents/lb. delivered for No. 1s, rising six cents over the last month, Prairie Ag Hotwire reported. No. 2s were 30-36 cents/lb., increasing seven cents, while X3s gained 12 cents, at 25-33 cents/lb. However, over the last week, prices were steady to rising a couple of cents.

Richlea lentils rose by five cents over the month to be positioned at 24-28 cents/lb. for No. 1s. No. 2s were up a couple of cents, to 22.5-24 cents, and X3s gained three cents, to 19-22 cents.

As for green Estons, they rose by a lesser amount. No. 1s garnered five cents, at 24-29 cents/lb. delivered; No. 2s were up two cents at 22.5-24 cents and X3s nudged up a penny to 19-20 cents.

Meanwhile, French green lentils bumped up only a penny, to 21-24 cents/lb.

— Glen Hallick reports for MarketsFarm from Winnipeg.

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The federal agency on Monday pegged the province’s 2020 lentil crop to come in at around 2.61 million tonnes on about 3.73 million acres. That’s almost a 26 per cent jump in production on a 13.2 per cent increase in harvested acres.

The numbers would put the province’s lentil crop at its second largest on record, behind 2.74 million tonnes harvested in 2016.

“It remains to be seen where yields really will be,” said Carl Potts, executive director of Saskatchewan Pulse Growers. “I think [yields] will be good on average or a bit above average, but not at Statistics Canada levels.”

Stating the agency’s numbers are “likely overestimated,” he said the summer heat, dryness, strong winds and disease likely have taken something of a toll on the province’s lentil crop.

Still, lentil production in Saskatchewan was up this year.

“Lentil prices had been stronger through the winter season and new-crop prices were looking stronger,” Potts said. “Farmers were looking at the market signals and responding to the higher prices.”

He estimated about 70 per cent of this year’s crop is red lentils, with large greens making up between 20 to 25 per cent and the rest being small greens.

At this time Potts couldn’t say if growers will produce a similar amount next year.

“It really comes down to what the market prices are at the time growers are making their planting decisions,” he said.

Saskatchewan growers produce the vast majority of Canada’s lentils. This year, that translates to almost 90 per cent of the 4.23 million planted acres in Canada and 4.15 million harvested acres, while bringing in about 85 per cent of 3.06 million tonnes produced.

— Glen Hallick reports for MarketsFarm from Winnipeg.

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The federal agency reported Monday that lentil production in Alberta is set to hit a record 458,124 tonnes this year. In 2019, the province produced 167,600 tonnes. The previous record was in 2016, when 451,800 tonnes of lentils were grown.

Alberta Pulse Growers chair Don Shepert, who farms near St. Brides, about 150 km northeast of Edmonton, explained the huge increase.

“Price is number one. When the COVID-19 pandemic hit and the world wanted protein, they came after lentils and all of a sudden lentils from the countryside were being shipped,” he said, noting prices jumped from about 15 cents/lb. to 30 and upward to 35 in some cases.

“When you’re getting 15 cents/lb., nobody grows lentils,” he said.

There really hasn’t been one type of lentil that stands out this year compared to other varieties, although red lentils are easier to grow and tend to have better yields than green lentils, he said. With those differences, one benefit for green lentils is they often come with a price premium.

“It seems to be a preference of the grower,” Shepert said, adding that on the whole, lentils use up less water than other crops, making it a good option for farmers in eastern and southern Alberta.

In dry years, he said farmers can still get their lentils to produce 10 to 15 bushels per acre. With good moisture, yields will increase. He pointed to the 374,200 acres that were planted in 2019, compared to 415,300 this year.

Prairie Ag Hotwire reported lentil prices ranged from 19.5 to 30 cents/lb. delivered for Lairds, 16-24 for Estons, and 15-22.5 for Richleas. Crimson lentils garnered 18-25 cents/lb. and French were 21-23.

StatsCan, in its model-based principal field crop estimates released Monday, forecast total lentil production to come to 3.065 million tonnes this year, the second most on record. That’s a 9.3 per cent increase from its August report and a 36.7 per cent jump from 2019, when Canada produced 2.242 million tonnes.

Saskatchewan grows the bulk of the country’s lentils and is set to reap 2.605 million tonnes this year, for its second-largest crop. No other provinces grew a StatsCan-reportable amount of lentils in 2020.

— Glen Hallick reports for MarketsFarm from Winnipeg.

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