Lentil Prices

[Jagfarms]

The Large Green Lentil prices have really come up since the Frost on Aug 20.
Will the Red lentil Price go up much more?

[TOM4CWB]

Jagfarms;

I was talking to a farmer in SE Sask, and he claimed a 75% reduction in yield in his lentils... IF he gets anything.

It is very hard to know exactly how many lentils are left... and what the quality will be of those remaining. It needs to stop raining now, and warm up... if we are going to get any high quality at all.

I have heard that much of the canary seed is totally a write off.

This frost was a real awful disaster for special crops in western Canada!

[charliep]

Western Canada exports the vast majority of green lentils so what happens here has a major impact on availability/price. Red lentils are grown in more parts of the world/less dependent on Canada.

[Jagfarms]

I have heard there is some large green lentil prices at 25 cents/pound today and I was offered 18 cents/pound for red Lentils today. How much more do you think the red lentils price will go up or down? I am going to wait 3-4 weeks and see what happens thinking they should not drop much in price with room for advancement.

[Incognito]

What did they yield? What are your gross returns per acre? What were your costs?

Take price per pound out of your marketing equation and you will be a better marketer and ensure your farm is around for another decade.In a markey that can jump up or down $200.00 a tonne in 10 days, don't gamble your profit away.

Free advice and its worth what you paid for it.....

[charliep]

Would agree with Incognito's advice. Green lentils (consumed whole) are a completely different market than reds (split for hommus). Again, reds are more a world crop/larger export volumes versus green lentils where Canada is a major export provider. Finally, I would have a look at the grade spreads on the laird prices. The 25 cents/lb only applies to #1 grade with #2 at a 4 cent discount and a hummugus further drop to a extra #3/#3.

What are you getting offered on your red lentils?

[charliep]

When I re-read, you indicated 18 cents/lb (should have read). Would sell some.

[Jagfarms]

Will the Frost or wet harvest weather have much effect on the maple pea prices? I see the Maple pea prices went up $1/bushel in the last few days.

[charliep]

The answer to your question is in your second sentence. In a poor quality or small crop year, you will often see processors/exporters scrambling around to find supplies for customers they have sold to. On the other side of the world from the processor/exporter side, farmers are not able to fill their contracts because of not being able to meet quality specifications. Long and short, you see a price spike. They usually last only as long as the processors/exporters need to find supplies or to the point where they are forced to cry uncle with customers/buy their way out of the contracts. Then the market goes dead because no one wants to get burned again. Don't know the maple pea market that well but happens in other markets.

I agree with Igcognito's observations. I also encourage dividing your sales up into parts. Selling some for a good price is always a beneficial plan.