As we’ve now turned the calendar over into September, the month of August ended with lentil prices back near their long-term averages.
Looking at average prices in Saskatchewan, large green lentil prices were 13% lower than where July ended, and 55% lower than at this time a year ago. For our GrainCents lentils readers, we’ve provided charts on lentil prices of all the varieties but here is one as an example.
Medium green lentil values were 3% lower than the end of July, while being nearly 47% lower than how medium green lentil prices finished August 2017 finished.
For small green lentils, prices were 8% lower than the end of July, while being nearly 52% lower than how prices finished in August 2017.
Red lentil prices were up nearly 2% compared to last month, but down nearly 35% compared to last year.
For our GrainCents readers, we’re watching a variety of factors that might affect lentils prices: 2 are bearish, 1 is bullish, and 4 are noise.
(If you’re not familiar with what “noise” is, then we recommend you check out our GrainCents risk management process towards lentils prices.)
This month, GrainCents investigated topics such as:
Late last week, Saskatchewan Agriculture provided their first estimate of the province’s yield, calling for 21 bushels per acre of lentils. This is 15% above last year’s Saskatchewan yield for lentils of 21.6 bushels per acre. The 5-year average yield for lentils in Saskatchewan is 23.8 bushels per acre, meaning this year’s crop is below the average.
Nationally, Statistics Canada said on Friday that Canadian lentil yields would come in at 21.4 bushels per acre this year. This is the same as last year but 11% below the 5-year average of 24.1 bushels per acre.
What’s also supportive is that, through Week 4, the Canadian Grain Commission says that 43,200 MT of Canadian lentils have been exported thus far. This is up 1,778% year-over-year and 3,950% better than the 3-year average of 1,100 MT.
It’s great to see Canadian lentils finding new homes around the world. The only question now though is can this pace be maintained.
To follow along with our monitoring of lentil prices (and making more sense of grain markets in general), join us for your free trial at GrainCents.