When I was at CropWeek last January lentils were all the rage for farmers. With high prices and increasing acres many people, including myself thought the best thing to do was to forward sell 2010 crop at low 20’s to protect against a bearish market. Throw in a poor spring, a wet harvest and resulting quality concerns and you have a spicy price market.
Its very clear that the people that have won this round of the lentil game are those that didn’t lock in any prices. Poor quality lentils are now being sold for more than forward priced number ones. The risk takers have definitely won this round.
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When I was at the Farm Progress Show in Regina in June, Sask Pulse Trading still thought the crop was in good shape of which I was kind of skeptical about. In terms of lentils it seems really difficult to get a grasp on this market.
Kevin Hursh discussed with me the lentil harvest from his farm and what is happening in the pricing market. Kevin is a farmer and also an agricultural journalist. If you cannot see the embedded video below, click here.
For those farmers that are able to get a grasp of this market and get their crop off on a timely basis this will be a win. The trouble is that many farmers are still battling lentil harvest in late September which is highly unusual. One thing is certain lentils a highly profitable crop but the risk is definitely present. Good luck to everyone !!