Smaller Canadian Pulse Crop Seen

WASHINGTON - Apr 13/09 - SNS -- Canadian pulse production will likely decline 6% this year as low prices cause a reduction in field pea production, argues the U.S. agricultural attache for the country in his annual report on Canada's grain and feed sector.

"At the time of this report, no plantings for the 2009-10 crop had yet begun, nor had the planting intension surveys conducted by Statistics Canada been released. The planting surveys are expected to be released (April 24). Forecasts for the 2009-10 crop year are therefore based on market conditions, farm media reports, industry information and historical trends.

"Farm reports indicate that producers feel that there are no clear winners this year and that crop decisions will be based on crop rotations and input costs. Production levels for most crops seem to be trending towards historical averages, due in part to a return to normal yields," the U.S. agricultural attache said.

The agricultural attache's comment comments on the pulse sector continue:

In 2009-10, Canadian production of pulses (lentils, peas and beans) are forecast to decrease 6% from year 2008-09 levels. Increases of 5% and 9% in beans and lentils production, respectively, are expected to be offset by a 10% decrease in pea production. A drop in pea acreage is anticipated in response to lower prices dues to high carry-in stocks.

Lentil acreage is expected to increase in response to higher prices. While the acreage seeded to beans is expected to decrease due to competition with good prices for crops that are easier to grow, bean production is expected to increase due to higher yields.

In 2008-09, Canadian dry pea exports are expected to fall slightly in response to lower demand. Exports in 2009-10 are expected to increase due to high carry-in stocks. Exports of lentils are expected to increase marginally in 2008-09. Despite high domestic supplies resulting from high carry-in stocks, a high world supply of lentils is expected to limit lentil exports in 2009-10. In 2008-09, dry bean exports are expected to decrease in response to lower supply. Higher supplies in 2010 are expected to increase lentil exports.