Lentil market shows slight recovery but growers hold back
Lentil prices have edged up slightly to $625 a tonne, giving Victorian growers some relief, but values remain far below last year’s highs.
Lentil prices have lifted slightly in recent weeks to $625 a tonne, offering growers some relief after a prolonged slide, but values remain almost 35 per cent below the $940 a tonne recorded at the same time last year.
Agronomically, lentils have offered Victorian farmers a rotational option and high prices were considered one of the highlights of growing the crop.
However, overseas market dynamics meant the premium prices were not there this season.
Market Check research analyst Richie Mould said there had been a small amount of improvement in the market driven by demand from Bangladesh and India.
“At a port price we are looking at $625 a tonne in Melbourne,” he said.
“It has just been a small uptick, and whether or not that is a signal of market improvement overall is still to be determined,” he said.
Mr Mould said the slight price reprieve could be simply the fact that overall the lentil harvest in Australia had been delayed a little bit and selling was quiet.
“The question is how aggressive the market will be going into harvest.”
In recent months prices dipped as low as $600 a tonne delivered to Melbourne. For places to the north, the value dropped to $590 a tonne.
Mr Mould said there had been signals from overseas, in the northern hemisphere, that farmers could possibly plant more lentils based on the prospects of good soil moisture.
“How much is planted, is a wait and see,” he said.
Despite the slight improvement in prices it was still estimated that farmers would opt to hold a large portion of the lentil crop on farm and wait for better marketing conditions.
Banyena farmer Chris Drum said lentils would likely be stored on farm rather than marketed directly at harvest due to the price.
He said recent falls of 40mm of rain had benefited the crop, however, a frost on Tuesday morning would have to be taken into account.
“The lentils here are still quite green, and they have plenty of moisture to keep podding,” He said.
Mr Drum said farmers had become used to higher prices for lentils and those values were not around.
John Newall from Stawell said he estimated that lentil harvest was around three weeks to a month away in the area of Marnoo where his family property was.
“They have been wanting rain for months, and things have been dry,” he said.
