Kabuli Chickpea - Large Green Lentil Ratio

Which asset is likely to produce greater returns?

Should one sell their Kabuli Chickpeas or Large Green Lentils?

Which commodity is likely to increase in value relative the other?

Relative performance is an essential consideration for the above decisions.

The chart below shows the Kabuli -Large Green Lentil ratio for the past six years.

The ratio has been trending down in favour of Large Green Lentils since the middle of 2021.

The ratio is below all critical weekly moving averages, including my canary in the coal mine, the 10-week.

Each tick on the horizontal line represents two months in the calendar year.

Notice how often Kabuli chickpea price rises relative to Large Green Lentils in the first three months of the calendar year?

Today is March 21st.

Will this seasonal trend change occur in 2022?

We will monitor and provide advance notice of this happening.