Canada Markets

The Canadian Grain Commission's Exports of Canadian Grain and Wheat Flour report for February shows bulk lentil exports through licensed facilities of 127,400 metric tons, with 84% of this volume destinated for Turkey. Cumulative bulk export data shows exports of 920,000 mt, up 122% from the same seven-month period in 2021-22, while is 120% higher than the five-year average for this period.

The attached chart shows the red lentil bid reaching a crop year low of 30 cents/lb. in mid-February, while it has since gained 5.5 cents to 35.5 cent/lb. as of March 29, including a 1.25-cent gain over the most recent week. This is down 3.25 cents from one year ago while is 9.36 cents or 35.8% higher than the five-year average for this week. Price has recouped 20% of the move from the September 2022 high to the February 2023 low, while the 38.2% retracement is 40.5 cents, a potential upside target.

The large green lentil bid reached a crop year weekly low of 40 cents in August and has since rallied to a crop year high of 53.5 cents, including a 1.75-cent gain reported over the past week. This is down 3.25 cents from the same week in 2021-22, while is 16.58 cents or 45% higher than the five-year average for this week. Price has now retraced 58% of the downtrend from the January 2022 high to the August 2022 weekly low. The 61.8% retracement lies above at 54.4 cents/lb.

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

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