Winnipeg, Feb. 8 (CNS Canada) – Lentil buyers are keeping on the sidelines as mixed weather reports from India bring an element of turbulence into the market.
Crop conditions in India are generally favourable, keeping Canada’s old and new crop lentil markets quiet, said Bobby Leavins of Rayglen Commodities.
New crop buyers are showing little interest until India’s crop emerges, while bidders and askers are too far apart in old crop.
“In a month we’re going to have a pretty decent idea what that India crop looks like, and buyers will be a little more comfortable putting positions on at that point,” Leavins said.
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Part of that reluctance comes from the idea that crop conditions can change at any time.
“Two years ago they [India] had a pretty good crop coming too, and they had a bunch of rain and hail, and storms wrecked it right at the end,” Leavins said.
Crop conditions are mixed, due to the sheer size of the country, “but the general consensus is that they’ve got at least an average crop coming,” Leavins added.
Agriculture Canada’s supply and disposition estimates, released on Jan. 30, included its first forecast for 2017 production. It sees a five percent drop in seeded area but improved yields, leading to production of 3.5 million tonnes, up from 3.248 million this year.
