Lentil prices rose recently despite reports of big crops in most of the major exporting countries.
“The bottom line is this – there is more supply available in the world today but there is strong demand prospects,” said Murad Al-Katib, president of Alliance Grain Traders Inc.
Canada should harvest a record 1.4 million tonne crop, with reds accounting for the biggest increase.
The U.S. Department of Agriculture expects a 264,519 tonne crop, up 142 percent from last year.
Al-Katib said much of the U.S. crop is medium green lentils, which won’t threaten Canada’s large green and red lentil markets.
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There are reports that extreme harvest heat in Australia caused as much as $30 million in quality losses in one region of one state.
Al Katib said Australia should still produce a much bigger crop than in the past two years, but he will closely watch the quality.
Demand outlook is encouraging.
Turkey harvested what many believe was half of a normal crop in May and has already used those supplies, Al-Katib said.
India’s poor monsoon created an opportunity for Canada’s large green lentils. Dehulled large green lentils look like split pigeon peas used to make toor dal, a popular Indian dish.
Green lentils often are used as a cheap substitute for pigeon peas, but this year they are fetching a higher price as a replacement product. Al-Katib said this is abnormal, and growers shouldn’t count on a repeat.
While demand looks promising, exporters are starting to worry about their ability to supply those markets.
Recession-struck container carriers are cutting costs and constraining the supply of the metal boxes that carry pulses to foreign markets.
“It’s just a little ugly,” said Gerald Donkersgoed, general manager of Finora Inc., a special crop exporter.
“There has been cargo rolled and vessels missed and opportunities lost out of Montreal in recent weeks and it’s starting to happen here in Vancouver.”
Al-Katib said the late harvest also impeded shipments.
