It is the time of year when producers decide whether to reduce new crop risk with delivery contracts or speculate that fall prices will be higher than offered today.
The Saskatchewan large green lentil grower bids coming across my desk are considerably off the early harvest highs, ranging from $0.56 to $0.5750/lb.
Readers who acted on our sell signal trigger below $63/cwt or $0.53/lb are feeling good about that decision, realizing gains of $3.00/bu.
Today is a great day to show some love.
Current new crop Large Green Lentil contracts range from $0.35 to $0.38/lb.
We will use technical analysis to compare the current new crop contracts to historical prices to assist in our risk management decisions.
Some readers debate the effectiveness of technical analysis in thinly traded illiquid markets like Lentils.
We believe that it is an effective tool and encourage you to track our analysis with this link, Large Green Lentil Analysis.
Let us look at the charts.
The first chart dates back to 1992.
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