Lentils market update, 21.04.2023
The lentil market is currently being driven by speculation, as planting is still some time away. The willingness of farmers to commit volumes for sale is a significant factor in determining prices. The rumor of massive sales in India due to the poor harvest of "pigeon peas" that Canadian lentils can substitute has led to a thickening of the market. As a result, the market remains very firm in the current crop, and the few available new crop offers are very defensive, bidding at historically high levels.
The forecasted carryover is already only 100,000 MT, which adds to the bullish sentiment in the market. However, logistics remain a significant concern, as it is still complicated to supply materials from Canada to the UK. This could further impact prices as transportation costs continue to rise.
Europe is also expecting bad crops due to dry weather conditions, which is not a new challenge for the region. This could affect Canadian prices in the future as there may be more demand from Europe.
In conclusion, the lentil market remains very firm in the current crop, and prices are expected to remain high in the coming months. The rumor of massive sales in India due to the poor harvest of "pigeon peas" is driving the market, but logistics remain a significant concern. The dry weather conditions in Europe may also impact Canadian prices in the future.