Agilyx Ord Shs AGXXF

Big decline in SK lentil production this year

[Aggirl7]

Haven't seen anyone talk about this on here. It's been a very hot and dry crop season in SK, which doesn't bode well for lentils. The last update from StatsCan forecast a 29% yoy decline in lentil production for Canada in 2017, can't imagine that will be good for AGT.

AFN is down 7% today on a note talking about lower crop production; much bigger deal for grain processors and traders than an equipment manufacturer imo.

[Marginofsaftey]

The supply reduction is inflationary to the price which is positive considering: (1) otherwise depressed pulse prices from a great 2016 Indian Harvest and (2) a unparalleled logistic network that AGT has, where it doesn't source any pulse produce greater than ~5% from any one producer.  Also keep in mind that Indian Harvest has declined by ~4-5% as a result of depressed prices, as

[Matlock]

I think you need a bit longer term perspective on the 2017 crop.... Yes, 2017 production is expected to be down 29% from last year.  BUT, 2016 lentil production was a blow-out record year, exceeding the previous high (2015) by 29%. The 2017 crop is still expected to be the third largest on record (after 2016 and 2015).  Yes, per-acre yields are down, however acreage is up.