Strong Undertone in Lentils

VANCOUVER - Feb 2/07 - SNS -- Lentil markets finished the week with a relatively strong undertone against ongoing commercial and U.S. government demand for product.

U.S. markets remain deeply divided, with processors in the U.S. Pacific Northwest being paid up to U.S. $20 per 100 pounds (cwt) for regular lentils, while their counterparts in North Dakota and Montana are receiving up to $13.50 cwt for current crop and $14.50 cwt for 2007 crop lentils.

The new crop premium reflects a general worry that seeded area will decline in the face of a forecast net increase in land in corn, soybeans and wheat in the United States this year.

Unusually strong wheat disappearance through December 31 in Canada also bodes well for an increase in seedings of that crop in Canada, which would pressure lentils. Some traders in that country believe seeded area for lentils could sink up to 20% from 2006, with a proportionately larger decrease in green versus red lentils.

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