Lower Area Lifts Lentil Market

VANCOUVER - Apr 28/06 - SNS -- Plans by western Canadian lentil growers to slash seeded area this year had an immediate impact on world markets, but none on grower markets in that country.

Asking prices for No 2 or better grade lentils rose sharply on export markets following the Statistics Canada seeding intentions report.

It found growers intend to slash seedings from 2.16 million to 1.3 million acres this year. By contrast, an informal survey by Saskatchewan Agriculture and Food predicted growers in the province would plant 1.99 million acres of lentils.

It is important not to put too much emphasis on the difference between the two numbers. Statistics Canada is the only agency in Canada which conducts a bona fide survey of growers to discover their seeding intentions, final seeded areas for individual crops, and the size of their harvests. The number of growers involved in each survey is substantial.

It is also important to recall that there is a world of difference between what growers intend to do in March and what they actually do in May June. Markets can change growers attitudes if current and/or new crop prices react strongly to the seeding intentions.

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