Feed wheat has saw some serious ups and downs this week as buyers pushed up bids to as high $6.00 FOB farm range in good freight areas, then came to a screeching halt today as buyers dropped over a quarter per bushel in a heartbeat. Based on current #1 red spring prices around $6.75/bu delivered elevator, the feed prices are extremely attractive if your product has any downgrading issues like low protein to diminish your price. On the same note, feed prices obviously surpass the current market on prairie spring wheat. If you are still holding on to unpriced wheat, touch base with your preferred merchant to see what price you can get FOB farm for after road bans.
The canaryseed export market is currently at 80,700 tonnes, ahead of last year’s exports at the same time marginally, but behind the 5-year average. There is some optimism because of the smaller Argentinian crop this year, but so far hasn’t produced much price movement. Usually export volumes tend to pick up in spring/summertime which we are creeping up on. They are forecasting around 250,000 acres to be going in this year across Canada. An average yield of 130,000MT would be the lowest total since 2014. Prices are currently sitting at 20.5 c/lb up to 21 c/lb on firm offer. 21c FOB has been hit and miss, but worth a shot. Call your Rayglen merchant to put up an offer.
The oat market has been quiet, with bids sitting around $2.50 /bus on a good #2 CW. From time to time stronger bids pop up on milling quality and offers seem to be the way to catch these highs. On feed quality $2.00 to $2.15 FOB/bus has been indicated and traded as of late. The feed oat market is very hit and miss right now, so again, offers seem to be the best way to get something booked. The further south east you go the better the opportunity there is for stronger prices. The best thing to do is to stay in contact with your merchant at Rayglen to give you the most up to date bids in your area.
Mustard remains range bound this week, not much change at all from last. Weak foreign demand continues to dominate the mustard picture right now. Again, this past week, significant moisture fell in mustard growing regions of Southern Saskatchewan and Southeast Alberta, but has not had an effect on price either way. Spot prices are sitting at 34 to 35 cents FOB for yellow, 40 to 41 cents for brown, and oriental is sitting at around 28 cents all on a per pound basis. Booking of new crop acres continue this week on all types as prices are solid. New crop yellow is still fairly strong at 35 cents, brown mustard is stable at 33 cents and oriental at 29 to 30 cents per pound depending on variety. Seed supplies are still available, but we are getting to crunch time as farm deliveries have already begun. We have numerous options for treatment and will deliver to your yard if still possible. Call your merchant for details.
The flax market has been steady again this week with both milling and #1 quality at $12.25/bu picked up in the yard. New crop flax has remained sideways at $12.00/bu FOB, with an Act of God. Yellow flax has seen some hit and miss buying as well at $13.00/bu on old crop picked up. New crop is getting some interest at $14.00-$14.50/bu FOB depending on movement. There haven’t been any market signals as of late for exports to China or the EU, most has been headed to the US. This helps the flax move but does not make up for slow exports elsewhere. Gains in the flax market are expected to be modest rather than a quick rally.
Chickpeas appear to have settled in as prices have remained steady for the past few weeks. There are very few chickpeas on farm that are not destined for seed, but if you do have some to market let us know as we have a few options left out there. New crop prices continue to sit around 30-31 cents/lb picked up on farm with an AOG and Sept-Dec movement. Despite USDA reports of a smaller than expected increase in acres last week, if an average crop is grown production will be way up and Canadian export opportunities to the US will dwindle. News now will shift to the Stats Can acreage report that comes out next week. Expectations are Canada will see a significant increase in acres, possibly more than double what was seeded last year. We will have to wait and see if this affects pricing moving forward, but the feeling is the industry is aware of these expectations already.
Soybean futures hover in a narrow trading range of roughly $10.50 – $10.70 USD as little new news has hit the market. The South American soybean story continues to unfold with Brazil at 85% harvested and total production estimates continue to rise near 119 MMT. Argentina is 25% harvested with production estimates at 40 MMT and expected to decline as the harvest moves into areas outside of the core production areas. Of little consequence to global soybean trade, Stats Can released its Canadian seeded acre report and indicated a drop of 3.8% to 7 million acres for 2018. It is expected that acres in the West will subside, whereas slight increases will occur in traditional growing areas due to decent price signals. Our Canadian currency continues to trade at values over 79 cents USD, which has negative impacts on our local soybean basis. Local soybean bids have recently seen $11.00 FOB farm depending on location. Local faba bean bids are in the $6.25-$6.50/bu FOB farm range for feed quality depending on location.
This week barley is still holding strong. We are seeing quicker movement times starting to fill up, with product being booked to be moved before seeding. Corn is starting to trade at lower numbers so we may, in the future, see barley prices start to slide back a bit. With that being said, we are still seeing very strong values on barley through to July. Be sure you know when your road bans are coming on, as we are starting to see the weather getting warmer. Those that had their road bans removed due to colder temperatures will start to see them come back. Prices this week are anywhere from $4.50-4.85/bu FOB farm depending on freight for May-July movement. New crop feed barley is also still strong with bids in certain areas as high as $4/bu FOB farm.
The story on peas is very unchanged from last week. Green peas are trading at $8.50/bu picked up on your farm for old crop, and new crop values are still trading at $8.25/bu delivered. Yellow pea pricing seems to be sitting at $7/bu delivered, but trying targets at $7 picked up might find some buyer interest too. If you happen to know the protein on your yellow peas we have a new market for high protein; up around 24-25%. These peas are being broken down and separated into protein and starches and are seeing values closer to $7.25/bu picked up. If this program is something that interests you, send your samples into our office so we can have the protein tested.
Canola made some decent gains today after the Canadian dollar lost almost half a penny on news that interest rates will remain unchanged. This, as it usually does, perked markets up, making the commodity more affordable to foreign buyers. What makes this even more relevant is the ongoing trade dispute between China and the USA. A “trade war” has some thinking China may look for alternatives to US soy products – a likely candidate… Canadian canola products! Today, May futures sit at $526/MT with Jul at $527/MT. Basis levels remain attractive, as low as $0/MT, for a per bushel price of roughly $12.00 delivered plant.
Red lentils remain stable this week, but green lentils continue to slip. Buyers remain buying hand to mouth to fill their market needs. Red lentils are hanging around the 17¢ -17.5¢ range. Large green lentils have been around the 25¢ range for old crop with new crop at 25¢ for 1 and 23¢ for a #2. A few buyers have shown interest in old crop X2 large greens that have been on offer. Lentil markets will remain quiet as trades are slow, and buyers feel once selling starts it could have a snowball effect as there seems to be an abundance of lentils remaining on farm. Markets seem to be at a stalemate as buyers don’t want to get caught long and sellers don’t want to miss the best price they can find.