New crop lentils and peas are now finding their way into growers bins across southern Saskatchewan. Across the province, it will be another 3 weeks before all pulses are harvested. During the final 3 weeks in August, our knowledge of quality and yields will grow exponentially. Here is what we know so far. Rain, wind, and hail that has been occurring at regular intervals has lowered initial harvest quality. We are seeing most lentils grade in the “lower end” of the #2 grade. This contrasts our harvest vision in July, where a hot dry growing season was expected to produce higher quality to make up for reduced yields. Today, farmers are reporting 10%-20% lower yields that expected, and poorer quality than hoped for. Markets are reacting early driving prices of red and green lentils to the highest end of the price spectrum. The question on everyones mind is how these prices will sustain themselves through the coming crop year. The current theory is that reds will sustain high prices through the fall, but have the potential to fade as we move into December as pipe-lines get filled and production from Australia and India becomes closer to reality. Green lentils, without competition, has the very real potential to continue appreciating as supply is rationed though the next 12 months. All energy will now shift to logistics for the remainder of the year and consideration of where these commodity prices should be in early 2016.
Have a great day.