Improved Yields & Expanded Cultivation Caused Bumper Crop

Canada is set to make a big splash in the lentil market this year, with production projected to hit 2.6 million tonnes (mt)—a solid increase of 0.8 mt from last year. Agriculture and Agri-Food Canada (AAFC) credits this growth to improved yields and expanded cultivation in the western provinces.

Breaking it down, red lentil production is expected to reach 1.6 mt, while large green lentils are forecasted at nearly 0.7 mt. Other varieties are contributing an additional 0.3 mt, rounding out Canada’s diverse lentil portfolio.

Exports are also on the rise, with Canada expected to ship 2.1 mt of lentils to major markets like India, the UAE, Turkey, and the EU. Domestic use, however, is set to decline slightly to 258,000 tonnes (Kt), while carry-out stocks are forecasted to climb to nearly 0.48 mt.

Lentil Prices Take a Dip: What It Means for Farmers and Buyers

The good news for buyers? Lentil prices are softening. In 2024-25, the average price is expected to drop by 17%, settling at $0,830 per kg. Red lentils are driving this trend, though large green lentils are maintaining a modest premium.

This comes after a challenging 2023-24, when Canadian exports dropped 24% to 1.67 mt due to tight supplies. Prices peaked at $1 per kg, with large green lentils commanding an impressive premium over red lentils.

The U.S. Lentil Market Steps Up Its Game

South of the border, the U.S. is gearing up for a big year too. Lentil production is forecasted to grow by 66%, with seeded acreage jumping by 71% to 0.94 million acres. Montana and North Dakota are leading the charge, contributing most of the 0.43 mt projected for 2024-25.

U.S. exports, which typically reach 0.2 mt annually, are also poised to benefit from this bumper crop, targeting markets like the EU, India, and Mexico.

2024-25: A Turning Point for Lentil Trade?

With Canada and the U.S. ramping up production, global lentil supply is in for a major boost. While prices are expected to moderate, robust demand—particularly in India and the Middle East—should help absorb this increase.

For Canadian farmers, the focus will likely shift to exports, where competitive pricing could give them an edge. Meanwhile, U.S. growers are entering the fray with renewed vigor, adding to the competitive landscape.

One thing’s clear: 2024-25 is shaping up to be a dynamic year for lentils, with opportunities for both growers and traders to capitalize on shifting market conditions.

 

 

 





Click here to reach our trading platfrom CMBroker