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Opposing views on lentil price outlook

by Kevin Hursh on October 27, 2010

The just released Pulse Market Report from Saskatchewan Pulse Growers has a couple of very different opinions on whether producers should be holding lentils for higher prices or selling them before prices go down. Mark Tycholiz from the special crops brokerage company TradeMark Grain does not believe lentils prices are going to weaken. He points to all the lentils that are going to be unusable for anything but livestock feed – perhaps 15 per cent of the crop. On top of that, he believes that only 25 to 30 per cent of this year’s production will fall into the top two grades. Tycholiz also points out that there’s been dramatic upward movement in the entire grain complex. His conclusion is that there’s lots of time to market lentils. Martin Chidwick of Bissma Pacific has a different view. Chidwick says if you can get 16 to 20 cents a pound for No. 3 grade red lentils or 20 to 25 cents for Extra 3 reds and if you enjoyed a 30 to 40 bushel per acre yield, you might want to take your money and thank your lucky stars. He says you won’t want the low quality around your neck come next summer. His advice is to look at the bottom line and not get too greedy. After reading the Pulse Market Report, growers may not know what to believe, but at least they’re hearing from some analysts with definite opinions. I’m Kevin Hursh.

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