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India's drought a bonanza for Canadian pulse growers

Posted by Eric Anderson Oct 15, 2015

Winnipeg/Mumbai | Reuters — Prices for Canadian pulses typically ease toward the end of the year but a recent dry spell in distant India, the world’s top producer and consumer, is driving them up.
Back-to-back drought years for the first time in three decades has eroded India’s output of pulses and boosted imports. Global prices of chickpeas, yellow peas and lentils have as a result hit record highs in what is a windfall for farmers in Canada, Australia, Russia, Myanmar and the U.S..
Lee Moats, who farms near Riceton, southeast of Regina, said he was selling red lentils for 50 per cent more than a year ago, and was holding back crops in the hope that prices will climb higher.
“India is a very large pulse importer, and there is a shortfall, and that’s where Canada comes in,” he said.
Canada is the top supplier of pulses to the Asian country, which is expected to import one million tonnes more this year.
Bids to buy Canadian red lentils and yellow peas are far higher than normal for this time of the year, typically a period when prices ease with new supplies, said Chuck Penner, analyst at LeftField Commodity Research in Winnipeg.
Prices should get a further boost with Canada’s 2015 pea output projected, by Statistics Canada, to drop 17 per cent from a year ago to 3.16 million tonnes. Exports from Aug. 1 to Oct. 4 rose five per cent to 906,000 tonnes, data from the Canadian Grain Commission shows.
“Things are going to get even tighter… We are going to have to hit the brakes hard in terms of what we can supply to India,” Penner said.
India’s appetite
Pulses are a key source of protein in India, which has been struggling to increase its output to meet local demand.
Imports could rise to 5.5 million tonnes this year, said Nitin Kalantri, a miller from the state of Maharashtra. This would cost India $4.5 billion, versus the $2.6 billion it spent to import 4.5 million tonnes in the year ended March, he added (all figures US$).
India, which consumes nearly 22 million tonnes of pulses annually, sources yellow peas and lentils mainly from Canada and the U.S., chickpeas from Australia and Russia, and green gram and pigeon peas from Myanmar.
This year, India suffered a poor summer harvest and there are worries the drought will hit winter-sown chickpea after growing regions received as much as 40 per cent less rainfall.
Canadian farmers are likely to plant more pulses next spring, assuming they will provide better returns than grains and canola, said Darren Lemieux, head trader for Simpson Seeds, a special crops processor and exporter at Moose Jaw, Sask.
Rod Nickel and Rajendra Jadhav report for Reuters from Winnipeg and Mumbai respectively.
 
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Posted in Farm related news | Tagged with lentils peas pulse crops India | More articles by Eric Anderson


June grain prices - SK Lentils up 53%

Posted by Eric Anderson Aug 06, 2015

Statistics Canada released the June grain prices today.

In Manitoba, Canola and Wheat prices were up slightly from last June, with Dry peas down slightly.

In Saskatchewan, Lentil prices were up 53% from last June, with all of the other crops up slightly.

 

In Alberta, Canola and Durum were up dramatically, with the remainder up slightly.

 

When all months are considered on the long-term trend, all three provinces have resumed an upward trend on all crops.

 

 

Source:  http://www.statcan.gc.ca/daily-quotidien/150806/dq150806a-eng.htm?cmp=mstatcan


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Posted in Commodity prices | Tagged with wheat canola durum lentils prices Alberta Saskatchewan Manitoba | More articles by Eric Anderson


Early Sask. lentil, pea harvests likely to support prices

Posted by Eric Anderson Jul 17, 2015

CNS is reporting that . . . .

Saskatchewan’s dryness could likely mean an earlier harvest and smaller yield for pea and lentil crops this year, according to a regional crop specialist.

That means new-crop prices will be supported, said Chuck Penner, president at LeftField Commodity Research.

Old crops are disappearing, he said, and the market will become active as soon as farmers start harvesting. “Buyers are ready to take this crop as soon as it’s off the combine.”

Pea and lentil prices will dip slightly right after harvest, he said, especially if farmers sell heavily, but he expects the market to recover after that.

Shannon Friesen, a regional crop specialist with Saskatchewan’s Agriculture Knowledge Centre in Moose Jaw, said lentil crops in the province’s west and pea crops in the province’s south are much more advanced than they should be.

There are indications desiccation will begin in August, which means farmers will start harvesting soon after, she said.

Full story at http://www.agcanada.com/daily/early-sask-lentil-pea-harvests-likely-to-support-prices


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Posted in Commodity prices | Tagged with lentils Saskatchewan crop prices | More articles by Eric Anderson


Saskatchewan Harvest Report

Posted by Flaman Grain Cleaning Aug 22, 2011

Southern Saskatchewan 2011 harvest is under way! The combines are rolling through peas and lentils in most of the areas that I have seen. The crops are looking above average in most areas of the south, after a rainfall of 25 to 30 inches in the south last year it is not hard to compare the quality of this year’s crop. Pea acres seem to be down substantially this year compared to recent years, after seeing what the quality of the peas are this year, this may be a tough pill for some farmers to swallow especially if the price continues to rise. The lentil quality also looks very good this year, after the European’s declared no glyphosate on lentils I have seen a few more lentil acres being swathed this year. Canola is being swathed daily and more and more acres are down every day, the canola crop’s look very good in southern Saskatchewan this year, which is a different look this year due to the fact that you would not usually see so many canola acres in Southern Saskatchewan, But with last year’s chem.-fallow acres very high it set farmers up well for a large canola year. Wheat and durum are slowly behind in some spots I have seen; staging anywhere from seeing wheat being swathed to wheat that still needs 3-4 weeks frost free weather to avoid another feed wheat year. As long as we can keep that white combine away, I would say that the 2011 crop year will be a very successful year in most areas of the South that did not drown out in June.


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Posted in Division News | Tagged with saskatchewan harvest combine crops lentils peas southern | More articles by Flaman Grain Cleaning