Red lentil bids in Western Canada have spiked into the C$0.50/lb range due to a combination of poor growing conditions in India and the lower value of the Canadian dollar relative to U.S. currency.
“There’s no question we’re going to have acres over four million. The only question is how much over four million. We’re going to have record acreage,” explains Chuck Penner of LeftField Commodity Research in this Pulse School episode focusing on what’s happening in the lentil market.
Dry conditions in India are limiting the number of acres planted and cutting yield expectations on the heels of reduced production last year, he notes.
Penner estimates 10 to 15 cents of today’s price is “strictly related to the Canadian dollar.”
Peas are also seeing record or near-record high prices, but there’s some thought that lentil premiums will limit pea acreage expansion in 2016. Stay tuned for another Pulse School episode with Chuck looking specifically at the pea market.