It’s the tale of two very different markets when it comes to red and green lentils, with both markets seeing early excitement to the upside earlier this year.
But now, Chuck Penner says, red lentil prices have dropped off sharply from the highs, while green lentil prices are strong enough there are new-crop bids already popping up on the landscape, well ahead of a more average timeline.
Penner, founder of LeftField Commodity Research, says that there are some similarities to the 2021 crop on the supply side, but there are significant differences on the demand side and global stage that factor in to the lentil market this marketing year.
For example, Canada isn’t the only player in the red lentil space, after Australia pulled off an impressive crop. India is still buying — which is good news — but Canada isn’t the only store in town this year, which wasn’t the case in 21/22.
Green lentils are a different story and strong demand and tight supply are holding that market firm. “We’re already seeing bids coming out for [green lentils], which tells you a whole lot about the outlook and how nervous overseas buyers are about locking in coverage for next year,” Penner says.
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