April 15 – Lentils Weekly GrainCents Digest

The local government of the Indian state Madhya Pradesh decided to interrupt its price support scheme for key pulse crops such as red lentils.

Last week’s Lentils GrainCents Weekly Digest indicated that India was scrambling to deal with the local pulse production glut. We reported that the local government of the Indian state Madhya Pradesh – one of the largest pulse growing areas down there – decided to interrupt its price support scheme (PSS) for key pulse crops such as masoor (red lentils) and channa (chickpeas).

There is more to report on that story this week. Indian sources report that the Indian government has agreed to buy just 20% of masur (red lentils) output in Madhya Pradesh under the same minimum price supports indicated earlier in the year. This is about half of what the government said they initially said they would buy. Clearly, India is still scrambling to deal with the local pulse production glut.

On another note, we find that the Indian pulse situation is dragging on the world pulse markets not only in the price direction but also in other ways. With the Indian situation going on, Canadian trade is reporting that the marketing environment for pulses has changed.The price discovery process is distorted. More specifically, the process is less transparent and is replaced with the word of the mouth approach. Farmers are more cautious to sell their pulses and are taking more of a wait-and-see approach.

As with last week, CGC data for the Week 36 of the 2017/18 crop year (the week ending April 8) confirms again that not many lentils are moving through the Canadian pipeline.

On the pricing front, prices haven’t really moved lately. Red lentils are seeing an average bid of 16¢ CAD per pound across the Canadian Prairies, albeit there were a couple dozen trucks bought this week on the FarmLead Marketplace at 18¢ CAD per pound for pickup on the farm in southeastern Saskatchewan.

We’re seeing that large green lentils in Saskatchewan are pegged at roughly 27¢ CAD per pound, down a few cents per pound. Medium and small green lentils (richlea and estons, respectively) are hovering around 24¢ CAD per pound.

To sum up, the Indian situation continues to dominate the pulse markets, including lentils. From a Canadian perspective, a lot of this hinges on the weather as well as with lentils acres across the Western Prairies this spring.(we’ll know in StatsCan’s acreage estimate report on Friday, April 27th)

That being said, for old crop 2017/18 lentils, we are at 80% sold on red AND green lentils (we moved to 80% sold from 60% sold in green lentils a few weeks ago).

For new crop 2018/19 lentils, we remain 0% sold on both red and green lentils.

Have a great week!

– Brennan, Garrett, and Adrian

 

 

April 8 – Lentils Weekly GrainCents Digest

April 6 – Red or Green – Which Lentil Will Pay in 2018/19?

April 5 – Will Bill C-49 Be Enough to Fix Canada’s Rail Problems?

April 1 – Lentils Weekly GrainCents Digest

March 29 – Like Canada, USDA Expects Lower US Lentils Acreage in 2018/19

March 26 – At These Prices, Will India Export Any Lentils Anyways?

About the Author
Brennan Turner

Brennan Turner is the CEO of FarmLead.com, North America’s Grain Marketplace. He holds a degree in economics from Yale University and spent time on Wall Street in commodity trade and analysis before starting FarmLead. In 2017, Brennan was named to Fast Company’s List of Most Creative People in Business and, in 2018, a Henry Crown Fellow. He is originally from Foam Lake, Saskatchewan where his family started farming the land nearly 100 years ago (and still do to this day!). Brennan's unique grain markets analysis can be found in everything from small-town print newspapers to large media outlets such as Bloomberg and Reuters.