Marketing Lentils

[bucket]

wmoebis said

"A lot of low grade wheat is bought and blended up and shipped for the grain companies profit. "

To certain extent that is true but the real winners are the guys from manitoba that get to blend their fusarium shit and get paid a #2 for it. That is where the support for the board comes from and that is why fusarium is a bigger problem every year.

If the cwb would quit putting a premium on the shit grain or at least pay the spread to the farmers growing the good quality grain it would be a little more acceptable.

In the lentil market the guys with good quality get paid for it, the guys with garbage lentils get paid less or hold until the market turns.

[wmoebis]

Exactally bucket "That is what I was getting at."

It was ment to bash the CWB. Thanks for helping me out.

I am not sure you are right that there is no blending in the pulse market although.

[dave4441]

There will always be some, but tight grade specs will make it difficult, nothing could ever be blended into a #1, some could be blended from X3 into a #2 but next to none from a #3 to a X3, or so small it would not be worth worrying about. A farmer can blend it himself as well and take the risk on making the grade. Whoever takes the risk gets the reward. Often blended prices are given to the grower and he gets alot of the benifit and does not have the risk.

[dave4441]

Problem in this lentil market is that once any shorts are covered, so many of the buyers really want X3/3 lentils. We sell them #2 or better reds because that is what we grow in Canada. If they have a cheaper X3 or #3 option they will take the lower price in many markets. See less demand for #2 reds and more for X3 in coming weeks.

[wmoebis]

So then to move product do the marketers sell #2 into #3 market and price? Because that is what we grow.

Which would drop our price of #1 and 2 and X3 and 3's or do we go off market because we don't have product demanded.

[Zaphod]

Here's another perspective on quality. I particularly like the part about Alliance doubling or tripling their margins on poor quality once they've split them.

http://business.financialpost.com/2010/09/09/alliance-grain-traders-waiting-on-delayed-lentil-harvest/

[dave4441]

Not 100 percent sure as we are breaking new ground on this. If there is cheaper product available, buyers will take that lower quality at a lower price and cancel a higher quality sale. Just depends on spread. Do not think there is much less volumne available, just that it is not available to the market right now. Talking about reds only. Greens way different story and mkt has reacted way different.

[JDGreen]

what are we breaking new ground on??? This is a repeat of 2002 all over except worse..