Calona Price Hike:
Canola oil is a vegetable oil derived from a variety of rapeseed that is low in erucic acid, as opposed to colza oil. There are both edible and industrial forms produced from the seed of any of several cultivars of the plant family Brassicaceae.
In the current price determinations, Farm Credit Canada declared that the prices for canola, wheat and red lentils will increase in the upcoming months.
According to pulse market specialists, red lentil prices must rise in order to pique grower interest in the crop.
“If current red lentil bids hold, we’ll be looking at a significant decline in red lentil output,” Simpson Seeds Inc. president Greg Simpson told growers at Pulse Days 2012.
Today’s offers of 16 to 17 cents a pound aren’t making anyone’s pulse race.
According to Stat Publishing president Brian Clancey, there is a good chance that costs will rise over 20 cents in the next months.
Canola is a plant that grows three to five feet tall and produces pods from which seeds are gathered and crushed to make canola oil and meal.
The average amount of canola will be around $520 per tonne in the upcoming 6 months, it was declared by an agrarian lender in the initial days of November in the e-newsletter. Earlier, the price was $443 per tonne in the months of January – September. FCC tagged the price at $256 a tonne for spring wheat which was $227 during the initial 9 months of the year. Red lentils increased from $523 to $544. FCC also told the price for yellow peas which is $267 pet tonne, $228 for feed barley and $271 for durum will trend a bit lower.
If this forecast is proved to be accurate one, then, the obvious winner will be canola which FCC declares has average of $468 a tonne in these past 5 years.
“Red lentil or calona prices will be higher on average next season than they were this season,” he said.
He does, however, expect red lentil output to fall to 629,300 tonnes in 2012, down from 780,400 tonnes the previous year.
Clancey anticipates ending stockpiles of 297,200 tonnes, down from an estimate of 437,900 tonnes this year, however this figure might be far lower if more of the poor quality harvest from 2010 is sold into local feed markets.
He anticipates 465,000 tonnes of big green lentil production, down from 606,600 tonnes last year, and 616,700 tonnes of total green lentil production, down from 751,500 tonnes.
Carryout of green lentils is predicted to be 252,800 tonnes, down from 322,100 tonnes in 2011-12.
Total lentil or calona production is expected to be 1.25 million tonnes, down from 1.53 million tonnes last year, but Clancey believes red lentil production might be considerably lower than he anticipates, bringing total output down to one million tonnes.
Simpson anticipates 2.07 million acres of lentils and 1.07 million tonnes of output, which includes 475,000 tonnes of big greens and 415,000 tonnes of reds.
His enormous green figure is about comparable to Clancey’s, but he anticipates 214,300 less tonnes of red lentils.
He expects no price assistance for huge green lentils or calona unless India’s pigeon pea prices increase.
Raghavan Sampathkumar, an employee of Saskatchewan Pulse Growers in India, says that is not in the cards.
The market is “very content” with the supply of pigeon peas from India’s kharif (summer) harvest.
“The reaction for Canadian green lentils or calona will be quiet for the next six to eight months,” Sampathkumar said.
Large green lentils from Canada, which are a decent alternative for pigeon peas, may face severe competition in that market from one of India’s neighbours.
“We’ve heard from the market that Myanmar would be favoured if there is a deficit in pigeon pea output in India,” Sampathkumar added.