Canada Markets

Agriculture and Agri Food Canada's monthly supply and demand tables tightened both pea and lentil carryouts for the 2013/14 crop year. The lentil carryout has been reduced to 125,000 metric tonnes from the 200,000 mt reported in April. This July 31 inventory would reflect a 59% reduction from the 307,000 mt reported by Statistics Canada to be carried out of the 2012/13 crop year, as well as the lowest carryout since July 2010 when 40,000 mt were reported to be carried out. The 2013/14 carryout would represent just a 6% stocks/use ratio.

Green lentil bids have remained steady in recent weeks, with today's bids to Saskatchewan plants reported by Statpub to be 21.69 cents/lb for large greens, 19.1 cents for medium greens and 16.36 cents for small greens. Recent strength is seen in red lentils, reported at 25.39 cents although social media communications were looking for product at 26 cents FOB farm today. Reds dipped as low as 18.57 cents in late October.

The July 31 carryout for dry peas in Canada was reported by AAFC to be 300,000 mt, down from the 450,000 mt reported in April. This would reflect a tight stocks/use ratio of 8% even though it reflects a 72% increase from the 174,000 mt carried out of the 2012/13 crop year.

Yellow pea and feed pea prices delivered to Saskatchewan plants have remained steady in recent weeks, with yellows trading at $6.69/bu. and feed peas at $4.48/bu. Green pea bids have fallen to an average of $9.76/bu., after being reported at an average of $12.96/bu. since late March.

Eyes will remain on India's summer kharif crop this summer. This crop produces roughly one-third of the country's total pulse production in the past, with a target of 7 million metric tonnes for 2014. So far, there is a 75% chance of an El Nino event hitting the country, with the Indian government calling for a reduction in monsoon rains to 95% of average. The distribution of rains may play a vital role in determining price direction.

Cliff Jamieson can be reached at cliff.jamieson@dtn.com

Follow Cliff Jamieson on Twitter @CliffJamieson

(ES)

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