Lentils in Bull Market Spread?
VANCOUVER - Apr 17/10 - SNS -- Lentil markets are showing the signs of a classic bull market spread, with old crop markets showing more bullish sentiment than new crop.
In the bull spread, speculators would, for instance, buy old crop for June-July shipment and sell new crop for October-November shipment. The idea is that the old crop will continue to strengthen because supplies continue to lag demand; whereas new crop shipping positions will rise more slowly or decline because of harvest selling pressure from the pending harvest.
More importantly, this thinking is being employed in benchmark commodities such as soybean. Pulse market direction is strongly influenced by events in benchmark commodities in the field crop sector because of competition for land and end user buying power.
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