Weather setbacks in two major pulse-consuming countries, India
and Turkey, is spurring imports from Canada, Alliance Grain Traders said, as it
unveiled better-than-expected earnings, sending its shares to a three-year
The pulses-to-pasta group said that importers are believed
to be taking in from Australia, Canada and the US "significant volumes" of
lentils, of which prices are proving "relatively stable to higher".
For Canadian lentils, buyers in the Indian sub-continent and
Turkey "continue to be leading destinations", showing rising volumes,
contrasting with small declines to some other destinations.
The trend appears to show "that these core production and consumption
markets may be covering short supply positions", reflecting "inadequate
production for both domestic use and regional supply", Canada-based Alliance
Grain Traders said.
"It appears to management that buyers are looking to avoid
short supply," the group said, highlighted "impaired" production both in
Turkey, where crop production has been hurt by drought, besides in India, where
monsoon rains are coming in short.
And this at a time when India has become a structural
importer of pulses, and "continues to import significant large quantities of
Canadian lentils to fill demand requirements resulting from inadequate
"Local production is expected to continue to be impaired in the
upcoming planting seasons, which may result in increases in imports once again
in the period after local Indian production has been consumed by the market," Alliance
Grain Traders said.
The India Meteorological Department on Tuesday estimated
India's monsoon rains this year at 87% of the average, below an initial forecast
The department forecast rains averaging 95% of normal in the
second half of the season, which lasts from June to September, after a figure
of 82% so far.
Alliance Grain Traders' comments came as the group unveiled an
80% rise to Can$8.81m in underlying earnings for the April-to-June period, on
revenues up 15.6% at Can$359.8m.
Results were boosted by increased volumes handled, largely
in Canada and Turkey, where the group received a boost from selling supplies received
late in the January-to-March quarter.
A deal with Cargill for selling flours, ingredients and
starches from pulses also "appears to be providing the intended platform for
growth", the group said.
The group's earnings equated to Can$0.44 per share, above
the Can$0.24 per share that analysts had expected, helping the stock soar 11.9%
to Can$24.24 in early deals in Toronto, the highest since August 2011.
The stock eased somewhat to stand at Can$23.23 in afternoon
deals, a gain of 7.2%.