U.S. Peas, Lentils Pressured by Big Crop

WASHINGTON - Oct 20/05 - SNS -- Prices for U.S. field peas and lentils are down sharply from last year as markets adjust to "this year's bountiful supply situation brought on by sharply higher acreage and favorable yields," notes Gary Lucier, of the USDA's Economic Research Service.

"In mid-October, Pacific Northwest (PNW) quotes for U.S. number one grade whole dry green peas were averaging around $5.00 per cwt (100 pounds) -- about a fifth below year earlier prices. Mid-October grower prices for whole dry yellow peas in the PNW were also running about a fifth below year-earlier levels. Both dry green and dry yellow pea grower prices have been below year-earlier levels since May 2004," Lucier said in the October edition of the USDA's Vegetables and Melons Outlook.

"Following several strong years, market prices for lentils have also declined on sharply higher supplies. Since peaking in November of 2004, lentil prices have trended lower and in mid-October stood at $11.25 per cwt (U.S. number ones) in the Pacific Northwest -- the lowest since September 2002. Over the past 15 years, lentil prices have trended downward in a cyclical pattern of about 4 years duration.

"Despite being a storage crop, lentils exhibit a very weak seasonal price pattern -- reflecting the absence of strong domestic demand, a reliance on food aid purchases, and irregular commercial export market opportunities," Lucier said.

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