Grain News

As flax get closer to being harvested, new crop prices have met up with old crop. Bids this week are anywhere from $13.00/bu FOB to $14.00/bu delivered, with some flax buyers withdrawing their bids completely until new crop becomes available. Although the crop outlook is favorable, old crop supplies are thin which is keeping flax prices at a supported level. There are mixed reports from overseas which are also keeping flax prices at bay. Russia and Kazakh are reporting some drought which will affect yields and on the other hand, the EU is reporting an increase in flax acres. Prices are likely to remain sideways in the short term until harvest gets rolling and more solid reports from overseas start to emerge.

The barley market has really taken a turn to the downside with harvest in full swing in southern AB. Recent bids are in the $3.45 to $3.65/bu picked up on farm in eastern Sask and potentially up to $4.00/bu FOB farm in western Sask/ eastern AB. We are seeing some carry in value for those able to hold on to their product for a few months. Reports of large barley crops could keep grower bids suppressed this year, but only time will tell. Selling barley at a premium for new year movement may be a good play as supply should be plentiful throughout the year. If you are looking for the most current and up to date prices in your area, please call your Rayglen merchant.  

The oat harvest is underway and some early yield reports deserve recognition and mentioning; up to 140 bus per acre in certain locations. Now, as always, these kinds of reports aren’t across the board, but so far, we can infer that yields will be above average, and supply should be plentiful. That being said, bids have not moved much over the last week in either direction. Indications are still being quoted as $3.50 to $3.75/bu picked up for good quality #2 CW oat for relatively quick movement. The opportunity to sell at those levels may fade as supply becomes available and we are already seeing bids for deferred delivery lower.

Chickpea markets shed a sliver of light as we head into festival season in India. While the attendance to festivals may be low, it should translate to higher consumption of chickpea flour. In addition, the Indian government has also decided that it will continue its distribution of 1 kg of chickpeas to almost 190 million families in need till November free of cost. It is believed that India is sitting on stock of over 2 mil tonnes, but the free food program will likely eat up half of that…. pun intended.  New crop and old crop values have come together for large Kabuli’s hovering around $0.26/lb FOB farm. Smaller calibre chickpeas are also back on the radar with the same values as larger. Desi chickpeas are still quiet and are trading at a lower value to Kabulis with no firm price in hand. If you are looking to market Desi’s, please call your broker and prepare samples for shipping.

Wheat markets remains mute this week as we roll into harvest. There is chatter of what percentage of this year’s production will make feed. An average year can produce 10-11% of feed quality, but about half of the time we will see a better-quality production with only 5-6% feed. This year could be one of those years where milling quality is a higher yield which would explain the stall for milling wheat.  CWRS 13.5% pro bids range from $5.50-$6.00/bu off the farm and 12.5% pro at $5.00-$5.35/bu. Feed wheat bids range from $5.71/bu in Lethbridge to $4.50/bu FOB farm Western Canada. All of this is location dependent and based on nearby movement (Sept-Dec). We are still in question period though and as we get more information on harvest; these values could shift.

Peas are being harvested in quite a few areas and yields to date haven’t been disappointing. This information is unlikely to provide any support to the already quiet market. Bids have been softening over the past month and there doesn’t seem to be any short-term upside to the pea market. Yellow peas are trading at $6.00/bu, greens up to $8.00/bu and maple peas are also seeing $8.00/bu, all picked up on farm. As per reports, India has seen an increase in their desi chickpea prices as supply has declined. However, this increase is still below their minimum support price which won’t encourage any import restrictions to be removed, yet. Therefore, if we do see any support to the pea market it likely won’t be till later into the marketing year.

Canola futures continue their steady climb up this week as November futures are posted at $488.60/MT today, compared to $485/MT at the same time last week. There is some carry in the futures market with January at $495.5/MT and March at $501/MT. As has been the case in the past, support for canola pricing is coming from strength in soybean oil futures. With canola futures on the upswing, now may be a good time to put out some firm targets and catch the rising market.

Soybean prices are still solid for the time being with bids at $10/bu in many areas of the province as a picked up on farm price. Our low Loonie has kept our price mostly in the double digits through a particularly weak period for soybeans as issues between China and US persist. Most of the buyers that we deal with on soybeans do not have any protein requirements and generally there are little to no issues on grading. Faba bean bids are pretty quiet right now for old crop but if you have some product to move let your merchant know and we can track down some pricing. Fall bids on #1 fabas are around $8.00/bu range on select varieties with a discount schedule on lower grades.

Lentil harvest seems to be well underway throughout the province. Early yield indications have been a wide range from disappointing to well above average. Red lentils are trading between 24-25 cents delivered, with some companies offering prompt movement. Large green lentils are sitting between 29-30 cents for a number 1 and 27-28 cents on a number 2. With similar demand we will likely see these prices fall as farmers get further along with harvest and more supply becomes available.

Canaryseed remains stable again this week with a few major players seeking product. Highest price being offered that we’ve seen is 27 cents FOB farm for immediate movement for those with product in the bin but offers may capture slightly better. If you’re looking for a new crop value with deferred delivery, say Sep-Dec, 26 cents FOB farm should be attainable. Canaryseed crops looks decent at this point in time, but if these high temperatures stick around much longer, it may lower yields as seeds in top of the head may not fully develop. Canary should have another good trading year as ending stocks will be lower than the last few years.

Stable unchanged pricing from buyers continues this week in the mustard market. We have heard the earliest reports on yields just starting in southern Alberta and southwest Saskatchewan. We will see how this develops and we will get a better idea as harvest picks up. Spot yellow is trading at 40 cents/lb FOB farm for August/September movement. Brown sits at 31 cents and oriental bids for short term continue to be a challenge with few options on the table. New crop yellow mustard ranges from 39-40 cents, new crop brown from 30-32 cents and new crop oriental 26-28 cents on forge. This may be the last week for new crop pricing as harvest starts.  Call your merchant for details.

Rayglen Market Comments are for informational purposes only. Rayglen Commodities and its agents or employees shall not be liable for any loss or damage suffered by any person as a result of reliance on any of the contents contained within these products, whether such loss or damage arises from negligence or misrepresentation or any act or omission of its agents or employees.

Chickpea markets are very quiet as of late. Current bids are in the 25 cents/lb range for a #2 product with across the board pricing. Obviously, this price is not bringing much (or any) product to the forefront as growers don’t get much inspiration at these levels. For most buyers that’s ok as the overseas market is very slow, and buyers are not looking to get much (if any) product on the books. The crop out in the field is a bit of a conundrum as issues with disease are reported to be pretty widespread and the jury is still out as to what tonnage and quality we will see from the infected acres. Reports suggest it may affect 20% of seeded acres. Ultimately the most important factor on our prices is that the world demand for chickpeas is strong and that we are still waiting to see how things unfold in India, Mexico and other areas.

Flax markets are definitely quieter than they were even a month ago. With new crop around the corner and analysts pegging the Saskatchewan crop 76% good or excellent, we are seeing prices around $14.00/bu delivered. The heat in the last couple of weeks may be a factor but at time of writing, analysts are giving the flax crop positive ratings. North American acreage is smaller and with less carry-over, prices should remain firm. The unknown is the European and Black Sea region crop. There have been some reports of drought on Russian and Kazakh flax which would impact yields. If yields are better than expected overseas, we could see the flax prices push down. As harvest evolves, prices will start to firm up.

The wheat markets have softened over the last couple of weeks. There is enough supply along with the large corn stocks, that buyers are not chasing the market. The 2020/21 crop year will be about capturing small rallies. This crop year will be about looking at the price per acre versus the price per bushel. The feed wheat market has also reflected the drop in prices. Prices vary based on location, but indication in the $4.00-$4.50/bu range picked up. Milling durum prices have also been stagnant with sideways pricing in the $7.50-$8.00/bu range.

Producers have begun harvesting and pea crops with strong yields look to be the case thus far. Even though acres were slightly down from last year we are expecting a larger production, with green peas seeing a big increase in tonnage. As per reports, it is being estimated that yellows will be up 9% from last year and green peas up 37%. If this ends up being the case, we could expect to see more downside in the green pea market. Any upside in pricing we may see this year will likely be gradual as well. It isn’t looking like we will be seeing many exports into India this year, so we will be more dependent on moving peas into China. Current pricing has yellow peas at $6.00 – 6.50/bu, with maples and green peas at $8.00 /bu range.

Canola futures are up slightly today with November posting $485/MT and January offering a $6/MT premium at time of writing. On farm producer bids for nearby delivery are around $9.50/bu pending location and freight costs. Strength seen today is due to a rally in soyoil and canola’s ability to ride coattails. Recently we’ve seen some stronger bids for Jan-Mar delivery, so if you’re interested in a new year delivery time frame, give the office a call. Harvest is underway in many areas and once we know how this year’s production shakes out, it should provide a good road map for the general tone of canola this year. 

The lentil market is sitting relatively flat this week as we start to hear of some lentils coming off in the southern areas of the prairies. While early reports on yields make it sound like a big crop is coming, there remains some concerns on later seeded crops having too much heat near the end to properly fill in. As far as pricing goes, small red lentils are hovering between 24-25 cents/lb FOB farm for #2 quality, large greens are at 28 cents/lb FOB farm on a #2, and small greens are also between 24-25 cents/lb FOB farm on a #1 quality. We encourage growers with contracts to get pictures and samples sent in quickly to get the ball rolling on movement.

Canary seed markets appear to be bucking the usual trend of weakness in pricing around this time of the year, with bids staying fairly sideways as we get closer to the crop getting put into the bins. Sask Ag’s final crop ratings show a solid improvement in canary seed crops across the province. Good or excellent ratings jumped 7% to a final number of 67%. That being said, acres did not go up as much as many people expected and on farm stocks have been depleted from the strong pricing of the last year so growers should expect a bit of strength come October/November. As for right now, we’re still seeing bids of 27 cents/lb picked up promptly for product in the bin, while new crop is at 26 cents/lb picked up between Sept/Dec with an AOG.

Optimism over ongoing trade negotiations with China helped overcome bumper yield projections expected from USDA. Private exporters reported a 4.8-million-bushel soybean export sale to China yesterday morning. It marked the fifth trading day in a row that China purchased 2020/21 U.S. soybeans. Soybean bids continue to hover between $9.50-$10.00/bu picked up location dependent. Faba bean demand for export quality is currently quite low with very little price differentiation between feed and #2 quality. Australian faba crop prospects continue to increase which is pushing prices down and also pushing Canadian fabas to the back of the line. Bids are in the range of $6/bu picked up in most locations. In general, across Western Canada, dry bean conditions would suggest above-average dry bean yields. Concerns about the US dry bean crop have moderated from some the earlier concerns that were being discussed in eastern part of the growing region. If seeded acres and crop intentions come to fruition, one can expect some price pressure on local cash bids.

Barley prices have really fallen back over the last week as new crop is already coming off in Alberta. Old crop Sask prices are ranging in that $3.40-$3.75/bu picked up on the farm and you may be able to still get movement here for August depending on the quantity. New crop prices are also weak as we’ve seen figures at $3.50 – $4.30/bu picked up on the farm depending on location with the latter being Alberta pricing. Feedlots are being shown an absurd amount of grain as it’s coming off hot and heavy in Alberta.

The oat market has remained pretty quiet here again this week. You can still find bids on old crop around that $3.25-$3.50/bu FOB farm on #2CW. There hasn’t been any change in the new crop market as buyers are still looking at $3.50 – $3.75/bu delivered in with movement being pushed out into the new year. If you are looking for some firm pricing call your Rayglen agent. There doesn’t seem to be a whole lot of feed oats around, but pricing is still hovering between $2.50 – $3.00 picked up on farm.

Mustard remains stuck in a holding pattern price wise. It’s a bit early yet for mustard harvest reports, so we anxiously await some yield information. Buyers report muted demand still, but there is some quick movement possible. Spot yellow is trading at 40 FOB for August/September movement. Brown sits at 31 cents. Moving oriental, short term is a challenge right now with little options on the table. New crop yellow mustard ranges from 39-40 cents, new crop brown from 30-32 cents and new crop oriental 26-28 cents on forge.  The price depends on the movement timeline but are picked up in the yard and still have act of God at this late date.  Call your merchant for details.

Rayglen Market Comments are for informational purposes only. Rayglen Commodities and its agents or employees shall not be liable for any loss or damage suffered by any person as a result of reliance on any of the contents contained within these products, whether such loss or damage arises from negligence or misrepresentation or any act or omission of its agents or employees.

Reports coming out of Saskatchewan suggest lentil yields are a little softer due to disease in central and some southern regions. The lentil crop has dropped below 70% rating good to excellent. This hot dry weather has really started to “turn” things with farmers not receiving the “fill” that was hoped for. On a pricing front, we are starting to reach parity as new crop inches closer to the bin. Large green lentils are sitting at 27-28 cents/lb on a #2 for both old and new crop. Medium green lentils are trading at 20-21.5 cents/lb, with small green lentils fetching 24-25 cents/lb and reds fluttering around 24-25 cents/lb on new and old crop.

Feed barley prices have pulled back some this week and are hovering around $3.80 – $4.30/bu picked up on farm. The latter price for those closer and into Alberta. As we start to creep closer to new crop product coming off you may see prices pull back some more as supply replenishes. Now may be a good time to dump the remainder of last year’s crop and make way for new crop. On that note, if you are looking to lock in some new crop give your Rayglen agent a call as buyers are willing to bid.

The oat market has not really done anything this week in terms of price movement. Bids range from $3.50 to $3.75/bu picked up for good quality #2CW’s. New crop oats are still roughly the same as last week as well and have been trading around $3.50 to $3.75/bu delivered depending on movement period. We also have some buyers looking for glyphosate free oats, which is becoming more of a common practice these days across many markets. Be sure you’re aware of any pre harvest desiccant restrictions so you don’t limit your marketing ability.

The flax crops around the province are looking really good thus far. The overall general feeling on flax remains very upbeat and positive. There is potential for above average yield if mother nature cooperates.  The price on new crop has been trading around $13.00 to $13.50 FOB for brown varieties and yellow is bid around the same value. It is expected that the price on flax should not dip to much or at all due to tightened carryout stock. For most up to date prices in your area or to throw out a firm target, please call your Rayglen merchant.

As we write this morning, canola futures start their day down with on farm bids fairly stagnant in the range of $10.30 to $10.00/bu pending location. With harvest getting ever so closer, the canola crop generally is in good shape, but there are a few areas that have gotten a substantial amount (or lack) of rain that are a bit concerning. Cash bids could push a touch higher in the long term, but short term we expect things to remain fairly stable. Keep an eye on the Canadian dollar as rises and falls usually sway the market in the opposite direction.

The pea crops in Saskatchewan are doing quite well and are rated at 88% good to excellent. This has the potential for yields to be above average this year, however, the crop is not yet in the bin and we look to the weather to continue to cooperate. Looking overseas, there was talk that the Ukraine pea crop was going to be large which would add to the competition into Europe, but the drought has significantly affected their yields. On to prices, old crop has scaled back to new crop levels. Yellow peas are at $6 – 6.50/bu FOB, green peas are $8.50/bu and maple peas are $8 – 8.50/bu. Looking to the new marketing year, any price upside will likely be small if yields end up coming off as high as predicted. Any price recovery would be regarding yellow peas, green peas may not be so lucky.

Canary seed pricing has remained stable these past couple of weeks. Old crop and new crop are both trading at 26-27 cents FOB. As per reports, we have seen an acreage increase this year, but yield estimates are a bit harder to judge as of right now. What could affect the canary seed pricing for the better is that US millet has seen a spike in pricing. Therefore, unless our yields come up substantially higher, we could expect to see some price recovery in the canary seed market.

Spring wheat supply is looking to rise this year in Canada and the US as the crops are looking quite well. Reviewing market prices, wheat had fallen back earlier this week and the markets saw some price recovery this morning. In overseas news, it is looking like China will be importing more wheat this year than it has in the past 7 years. Finally, after the recent explosion in Beirut, reports suggest one of the main silos containing wheat has been destroyed. Their wheat reserves are now lacking, and they will have to replenish to get back up to a comfortable 3 months’ supply on hand. For pricing, hard red spring wheat is around $6.00/bu, milling durum is $7.50 – 8.00/bu and feed wheat/durum is trading at $5.00/bu.

Soybean futures claw back some losses today after early week declines across the whole soy complex. Looking to our southern neighbours, one report predicts US yields to be around 54 bu/ac and after a lower than assumed seeded acreage number, these yields should leave the states with a comfortable supply. This likely doesn’t offer too much upside to the commodity price, but time will tell as the crop still needs to hit the bin. Local Canadian bids see little change this week with most buyers indicating $10/bu range FOB farm, give or take pending freight costs. For a firm bid in your yard on soybeans or any other dry bean on your farm, please call the office.

Chickpea markets continue flat as we move towards harvest. We have seen disease firsthand in some area, as our merchants return from crop inspections. We will see how this plays out in samples and yields. Old crop large kabuli bids hover around $0.26/lb off the farm and new crop coming in at the same value. With continued concern around growing conditions, is it possible we will see higher prices? Stay tuned on this front as reports start to roll in.  

Mustard prices are solid this week. Not a lot of change on this front. Demand has not been stellar from buyers this week with quick movement, but prices remain strong based on future demand and the planted acre situation here in the province. New crop yellow mustard ranges from 39-40 cents, new crop brown from 30-32 cents and new crop oriental 26-28 cents on forge.  The price depends on the movement, but are picked up in the yard and still have act of God.  Call you merchant for details.

Rayglen Market Comments are for informational purposes only. Rayglen Commodities and its agents or employees shall not be liable for any loss or damage suffered by any person as a result of reliance on any of the contents contained within these products, whether such loss or damage arises from negligence or misrepresentation or any act or omission of its agents or employees.

Its crop inspection week(s) here at Rayglen so the office is pretty sparse on staff. Comments will be pretty short and sweet this week.

Soybean prices have been lower due to low demand and good crop conditions in US. Most of the bids we have seen lately have been closer to $9/bu FOB farm, maybe a touch better in the right freight area. No fall pricing to post as buyers waiting to see how things unfold over next few months. If you are looking for prices on faba beans for fall we have a buyer looking for some firm grower targets; north of $8/bu sounds to be workable on the preferred varieties.

Feed wheat markets are weaker in lots of areas of the province lately as $5.00/bu becomes much harder to track down from most buyers. If you are to the west we can still find bids on the right side of $5 picked up on farm but end users are filling and focus turns to new crop which tends to diminish prices, you know, the whole supply vs demand dance. Milling wheat prices just scratch above $6 bucks a bushel delivered to plant for a #1, 13.5px CWRS which is obviously, not great. 

Mustard prices are holding strong again this week. New crop yellow mustard ranges from 39-40 cents, new crop brown from 30-32 cents and new crop oriental 26-28 cents on forge.  The price depends on the movement, but are picked up and still have act of God.  There is also room in August to move out some old crop. While the 2020/21 crop year may have some tighter supplies, analysts are reporting that this won’t impact price the same as it has in previous years. The Black Sea region supplies will offset the smaller Canadian crop.

There is limited room to move old crop oats, but if there are some in the bins, we are seeing prices range from $3.50-$3.75/bu picked up. New crop is also still holding with prices ranging from $3.50-$3.75/bu delivered depending on movement. Reminder that some buyers, and the list grows, are only buying glyphosate free oats.  If you have any feed oats in the bins, we have opportunities as well.

Feed barley prices have stayed strong this week again. Old crop barley that is heavy and dry is trading between $4.00 – $4.50/bu FOB Farm depending on location.  New crop prices are $3.50 -$4.00/bu. Much of the barley is heading west into Alberta so, pricing is best the closer you’re located to southern Alberta.  We always have bids at discounted prices for any off-spec barley as well so be sure to let us know what’s in your bins.

Chickpea markets hold fast as we move through the final stretch of the growing season. Reports of white mold and root rot are prevalent but this has no reflected on the values on the market. Old crop large kabuli bids hover around $0.26/lb off the farm and new crop coming in at the same value. With continued concern around growing conditions it would not be surprising to see a bump in these values sooner rather than later as previously expected.

Flax crops are still flowering but looking really good. Quality is not a concern as of yet despite talk for most special crops being under disease pressure. New crop bids are around $13.00/bu FOB for Brown and Yellow is at par. Old Crop can still get a bit of a premium depending on quality and movement. Old crop is more of an opportunistic scenario where buyers are coming in with a short to fill and the need is immediate. Best way to capture that market is setting targets. Call your broker to discuss options and opportunities.

As we head into the upcoming harvest the old crop peas markets have gone quiet. Old crop green peas are trading between$8.50 and $9.00/bu picked up on farm whilst old crop yellows are at $6.00 to $6.50. Maples bids, if you can find one, are between $8.50 and $8.75 delivered to plant. Early reports suggest that pea crops will be average to above yield. Most buyers will likely not back to the market until combines hit the field.

Lentil markets are staying relatively strong for this time of year. Old cop reds are still trading at 28 cents/lb delivered with new crop trading between 24-25 cents. Large green lentils are still sitting at 28.5 cents picked up on farm for a #2 quality. New crop pricing on large greens seems to be harder to find right now which, in part, could be due to India this week suggesting they may have a big pigeon pea crop.  Lots of pigeon peas limits India’s need for large green lentils. Medium green lentils have lost a cent or new and old crop bids and small greens still have some interest at 28 cents on a #1 FOB farm.  

Canola disappearance is occurring at faster rate than earlier anticipated. Whether this was whole seed exported through developing trading channels or finished product through Western Canadian crush facilities, the result is a carryout number that is less burdensome than originally forecasted. If disappearance holds pace into new crop, we end up with carryout figures that could conceivable be well below the five-year average of 13%. Local spot bids for canola are near $10.90/bu delivered in some locations. New crop bids are also strong hovering around $10.50 delivered. We continue to have premium picked on farms bids for non-GMO canola. Contact your Rayglen merchant for more details.

Credible canary seed yield forecasts seem to remain elusive and firm carryout numbers are equally as vague. With that considered, sometimes demand and current bid are as good an indication as to what the market believes the relative abundance will be. Some have attempted to quantify these statistics and have assembled supply and disposition tables with their assumptions resulting in lower carry outs than last year. This would be supportive for bids and in large part that is what the market is currently reflecting. Local spot bids are 27-28 cents/lb picked up location dependent and new crop bids are in the range of 25 cents/lb picked up.

Rayglen Market Comments are for informational purposes only. Rayglen Commodities and its agents or employees shall not be liable for any loss or damage suffered by any person as a result of reliance on any of the contents contained within these products, whether such loss or damage arises from negligence or misrepresentation or any act or omission of its agents or employees.

Flax is looking good to excellent in Saskatchewan according to the latest reports from analysts anticipate good odds of above average yields for 2020. While the crop is not in the bin yet, it has given some breathing room for exporters. Old crop flax prices are starting to merge with new crop pricing and the highs we saw a couple of weeks ago are down slightly. The flax outlook in the key areas of Kazakhstan are reporting dry conditions with yield potential reduced. On the other hand, seeding acres are up 15% in those same areas, so that will offset lower yields somewhat. This could provide more support for Canadian flax exports. There is a small window to move old crop flax out before buyers wait for the new crop harvest to hit the bins, so consider making some final sales.

Oat prices remain strong again this week with old crop bids for July / August still hovering around $4.65/bu delivered to some locations. New crop ranges anywhere from $3.50-$3.70/bu delivered depending on the time frame of delivery. Feed oats have some movement as well indicating $2.50/bu FOB farm as long as they are heavy and dry. We also have some buyers only looking for glyphosate free oats now and after harvest, something to keep in mind to expand selling options. If you have a target in mind, call our office and we can get that set up for you.

The November futures price on canola is down a little bit this morning at time of writing, although grower bids seem to be stable. Product has been trading around $10.50/bu delivered plant in the Saskatoon area with other varying bids throughout the province. The canola-rape oil stocks are getting tight in China, which could provide some support down the line. China’s rape oil prices have gained nearly a third since May 27^th. The China/Canada rocky relationship is definitely not helping the situation, but continued purchase commitments of US soybeans from China should provide underling support for canola.

The pea market remains quiet as we inch closer to harvest and is expected to continue this way till new crop comes around. Right now, the pea acres seem to be doing well, with a few disease issues popping up due to excessive moisture. This next week is forecasted to bring some heat which should help with the pulses. Pea prices aren’t expected to fluctuate a bunch after harvest, unless we have yield issues pop up. Even if yield is affected, a price bump could be slow to arise as per reports. Green pea acres are up which will keep pricing at bay, while yellows could see a price recovery if China stays in the market. Current pricing on yellows is $6.00 – 6.50/bu FOB and new crop at $6.50 – 7.00/bu and spot green peas are $9.00/bu FOB with new crop at $8.50/bu. Maple peas are $8.00/bu FOB and $8.50/bu FOB on new crop. Into this week we have seen more buyers state glyphosate free is the preference, so growers need to be aware on their market restrictions.

Wheat futures were up across the board this morning. However, wheat acres in Canada and the US seem to be doing well overall, which could affect pricing from pushing higher. Bids on higher protein (13.5%) HRS wheat see $6.00/bu but with delivery dates pushed out further into the year. We do have a buyer looking for low protein wheat, so if you have some in the bin that isn’t quite feed, we may have some other options. Feed wheat/durum is trading at $4.75 – 5.50/bu FOB and the durum market also had a few $8.00/bu new crop trades in the South East based on a #1 US quality.

The chickpea market is very quiet right now. Spot prices are very hard to come by, but we have a few buyers kicking around with some bids in the mid 20’s with across the board pricing. On the other hand, some buyers are showing much lower prices. We still have a buyer or two posting new crop values in the high twenties delivered to plant with an act of God, but we don’t have any indication how deep that business is so treat as such. Reports again this year, like last, of an emerging plant health issue showing up in chickpeas in southern Saskatchewan as well as Montana & North Dakota raise concerns with this crop and bring questions about the future on growing them here. As further information on this malady comes in, we will share it but we have talked to multiple producers who have already dropped chickpeas as an option last year due to this problem so this will likely compound that response.

Old crop canary seed pricing has dipped down as new crop and old start to converge. Old crop bids are currently sitting at 27 – 27.5 cents/lb delivered in. New crop canary continues to trade at 26 cents/lb picked up on the farm for Sept – Dec with an Act of God. The crop conditions on canary seed have dipped a bit and are pegged at around 60% rating good to excellent. Hopefully the weather will co-operate and bump these numbers up.

Soybean futures are in a tug-o-war with optimism over favorable crop development and continued Chinese demand. Tensions between the U.S. and China could spoil demand prospects. That said China continues to make purchase commitments for U.S. origin soybeans. Local soybean bids continue to hover around $9.50-$10.00/bu picked up depending on location. Still good opportunities to contract new crop faba bids at $8.00/bu for #2 export quality. Dry bean demand still exists, and buyers will be interested in purchasing any new crop contract overages.  

Feed barley prices are still strong for movement in July/Aug. They then start to drop off to slightly lower new crop values so now is the time to get the last bit in the bin sold before the prices converge. Old crop barley that is heavy and dry is trading between $4.00-$4.40/bu FOB farm depending on location, while new crop ranges between $3.50-$4.00/bu FOB farm. For both prices, the closer to southern Alberta you get, the stronger the pricing will be. We have also have bids for any off spec feed barley, so be sure to call in for a price in your area.

With the recent rain we are heating some reports that lentil crop conditions are deteriorating due to disease. Talking with farmers this week most have done their first pass of fungicide and some are on their second. News of these condition has not affected market price as of yet. Red lentil old crop pricing continues to converge with new crop pricing. Large green lentils remain relatively strong on old crop pricing with #2’s trading between 28-29 picked up on farm. New crop large green pricing is a little hard to find but seems to be still sitting around 28/26 for a number #1/#2 priced contract. Predictions are that red lentil supply should be average, but the green lentils supply may remain tight. The Hindu Business Line reported that the Indian government has announced an increase in their MSP (minimum support price) for lentils for the upcoming kharif crop. The increase is said to be a gain of 3.48%. They are hoping to encourage the seeding of more pulse therefore reducing their need to import. Increase acres on paper is great concept but the crop is a long way from the bin. So, until the crop is in the ground and harvested it is anyone’s guess on what kind of supply they will have this winter.

This past week has been fairly stable on mustard prices, with the low acreage number seeming to still provide support. The prospect of very good crops and yields hasn’t dampened prices due to the surprise seeded acreage report showing the huge reduction. Again, the story remains the same; slow export pace along with some skepticism in the seeded acreage report. This is why we see values creeping up a little but not going much higher at this juncture. Yellow mustard remains at 40 cents for old and new crop. Brown is solid at 32 for new crop and 30 to 32 for spot pricing, depending on movement. Oriental Forge sits at 28 for new crop and 26 to 27 cents for old crop might trade. Oriental Cutlass sits at 27 for new crop and 25 for old crop possibly. Moving old crop oriental is a bit of a challenge right now. Call your merchant for details.   

Rayglen Market Comments are for informational purposes only. Rayglen Commodities and its agents or employees shall not be liable for any loss or damage suffered by any person as a result of reliance on any of the contents contained within these products, whether such loss or damage arises from negligence or misrepresentation or any act or omission of its agents or employees.

Milling quality flax prices are still holding but some buyers are starting to make that transition from old to new crop pricing. The window is also getting smaller for old crop to move out before buyers just put on a hold and wait for the new crop to come off. Canadian supplies are pegged to remain tight, but the demand is what is shifting. Canadian seeded flax acres are more concentrated here in Saskatchewan with a 5% increase. Alberta acres are down by 15% while Manitoba’s seeded flax acres are even lower by 48%. The larger than expected US acres will restrict some imports. The wild card will be the Black Sea region and the size of their crop.

The oat market remains strong with many companies paying upwards of $4.25 to $4.50/bu delivered in. If you are looking for a price FOB farm or would like to put in a target, please call the office. The feed oat market also is very consistent, and product has been trading between $2.50 to $3.00/bu FOB the farm for dry/heavy oats. A friendly reminder that some buyers have moved to only taking glyphosate free oats and that these sorts of markets seem to be popping up more often. Something to keep in mind this harvest season.

Pea crops are looking decent at this time of the year, however concerns about disease are starting to arise. These wet conditions could start to cause issues as some areas are already reporting yellowing in pulse crops. Right now, pea bids are quiet, however come harvest we could see some changes. Green pea acres are up and if a decent crop comes off, prices we could see prices soften a bit. On the other hand, yellow pea carryout supply and planted acreage is down, therefore we could see slight price recovery after harvest. Green peas are trading at $9.00/bu and new crop at $8.50/bu FOB. Yellow peas are $6.50/bu for old crop and $7.00/bu FOB on new crop. Maple peas have remained quiet with old crop at $8.00/bu and new crop at $9.00/bu FOB.

The canola crop across the prairies looks to be in relatively good shape although some areas are showing concern over excess moisture. Still, it is reported that about 72% of the crop is in good to excellent shape. November and January futures are down this morning as we write. Along with a rise in the Canadian dollar, weaker vegoil complex seems to be the culprit for these softening markets. Producer delivered plant bids remain relatively unchanged with the highs around $10.50/bu in the northwest and down to $10.15/bu in the southwest part of the province. These values translate back to roughly $9.75/bu range FOB farm and higher across Saskatchewan.

Chickpea markets are status quo despite buzz of root rot and issues in applications of fungicide. That’s not to say that it won’t change, but right now there does not seem to be a huge concern over quality for the current crop with the belief that the bins are full of good quality. Old crop values for #2 Kabulis have slipped to $0.25-0.26/lb FOB farm and new crop slightly below that with an AOG. Feed chickpeas are starting to slow on movement as processors fill up, but bids remain the same @ $0.10-$0.12/lb FOB farm.

Low StatCan seeded acres on mustard have provided a bit more fodder to the current mustard spot price with the yellow varieties creeping back up to 40 cents/lb for summer movement. We have heard some oriental interest in the mid-twenties plus range and brown prices have saw some interest north of 30 cents on the right grower target. The seeded acreage report showed drastic reduction in the oriental and brown mustard acres and a smaller reduction in yellow. Our carryout numbers this year are tight but not as tight as they could be as our exports are over 10% behind the normal pace; so the cupboards are not as bade as they could/should be.  This slow export pace, along with some skepticism in the seeded acreage report, is why we see values creeping up a little but not going wild at this juncture. The crop conditions for mustard are reported to be very good, but mustard does tend to start strong and creep lower as the hot and dry season comes along.

Canary seed prices remain stable for new crop at 26 cents for fall delivery with an Act of God. Old crop has been trading at 28 cents but that is getting hard to find especially for quick movement. The industry feels that 20/21 supply is going to remain tight as the acreage numbers are modest. If trade numbers remain similar to 19/20 numbers, future canary prices should remain similar to this past year. 

Old crop red lentil prices seem to have lost a cent or two pricing over the last week. This is normal as we near the upcoming harvest. If grain cannot be delivered before the end of July, then most companies will wait for the new crop to come off and start taking delivery of their precontracted product. Even though old crop prices are slipping new crop prices remain around the 25-26 cent mark for September to December delivery. Large green lentils remain strong for old and new crop. Old crop #2’s are still trading at 29-30 cents, and new crop values average 29 cents for #1 and 28 cents for a #2. We also had a buyer come to us this week looking for a few loads of French greens. If you still have some in the bin give us call to find out more information.

Feed barley prices are hanging on late in the crop year with bids not changing much over the past few weeks. Heavy and dry feed barley will fetch an attractive $4.00-$4.40/bushel FOB farm depending on your location for July/August movement. Bids look strongest the further west you are in Saskatchewan. We always have bids at discounted prices for any off-spec barley as well so be sure to let us know what’s in your bins. New crop feed barley bids have shown up and are as high as $4.00/bushel FOB farm in western Saskatchewan.

Weather and crop ratings continue to underpin supply pressure, recently sending futures prices higher. China continues to firm up purchases as the country expands its poultry and swine herds. Local soybean bids continue to hover around $9.50-$10.00/bu picked up depending on location. Still good opportunities to contract new crop faba bids at $8.00/bu for #2 export quality. The acreage increase in dry beans is old news. Dry bean production will still be a question mark as we move through summer and into harvest. If seeded acres and crop intentions come to fruition, one can expect some pressure on local cash bids.

From a US and a commodity futures perspective, concerns about looming production cuts following last week’s La Niña weather outlook has offered modest support to the wheat complex. Across the Western Prairies wheat production volume per acre is anticipated to be up due to favorable weather patterns. Quality becomes the question now, with regard to grade and protein levels. Old crop milling wheat #2-13.5 hovering near $6.50 delivered. Feed wheat bids are ranging from $5.00-$5.50 picked up location dependent.

Rayglen Market Comments are for informational purposes only. Rayglen Commodities and its agents or employees shall not be liable for any loss or damage suffered by any person as a result of reliance on any of the contents contained within these products, whether such loss or damage arises from negligence or misrepresentation or any act or omission of its agents or employees.

As we know, pea acreage numbers remain fairly neutral in total acres, with green peas seeing an increase in plantings and yellows decreasing. Green peas were trading at favorable values which pushed the decision for more greens to be planted this year. Overall, our new crop values are steady, but we saw old crop values take a hit these past couple of weeks. Yellow peas are trading at $6.50 – 6.75/bu FOB, while greens are bid at $10.00/bu delivered. New crop bids sit at $7.00/bu on yellows and $8.50/bu on greens. With green pea acres up, there may not be much of a price uptick going into fall, but reports suggest we may see some upside to yellows. Maple pea markets remain unchanged, with new crop at $9.00/bu and old crop down slightly to $8.00 – 8.50/bu.

Canola futures have been gaining strength over the last little while and markets closed at their highest point in the last 3 months yesterday. The reason for the gains has a lot to do with excessive moisture in Western Canada and crop development concerns. As we write this, canola is so far unchanged this morning, but we hope to see continued strength as the day goes on. Producer delivered plant bids range between $10.50/bu in northwest Sask, down to $10.15/bu in the southwest. For the most up to date prices in your area, basis levels and/or a firm FOB farm bid, please call your Rayglen merchant.

Even with an estimated acreage increase of 12%, lentil prices remain sideways this week. Of course, yields will play a role in supply, but with less carry-over, the crop shouldn’t feel burdensome. Lentil bids haven’t collapsed and there is still opportunity to move old crop. We would expect to see old crop prices start to align with new crop at this time, but spot bids remain at an attractive premium (5cents/lb on reds and 1-2cents/lb on large greens). Red lentils are accounting for most of the gains in acres, so we may see more upside potential in green lentils in the future. The recent wet conditions in some areas could affect quality, but the latest Sask Ag report shows continued improvement on the 2020 lentil crop overall.

This year a decrease in flax acres of 3% is very minor and prices reflect that with no change in new crop values. If yields are average, production would be pegged at an increase of 8% from last year according to analysts. Exports in June showed shipments to the EU and China, but volumes will be limited this month. There is still demand for milling flax but supplies on farm seem to be of poorer quality and/or spring threshed.  If you do have milling quality in the bins, $16.00/bu would be an attainable number. New crop brown flax continues to trade around $13.00/bu FOB farm. While Canadian supplies are likely to remain tight, the larger than expected US acreage will limit exports there. There are also some early reports with dryness in the Black Sea region; we remain optimistic that this could leave room for more Canadian flax being shipped into China and the EU for 20/21.

Old crop milling oats are still trading strong, around $4.50/bu delivered in. Give your Rayglen merchant a call if you want to put out a firm target if you’re looking to capture more. Feed prices are trading sideways this week as we continue to hold onto pricing at that $2.50 – $3.00/bu picked up in the yard on dry, heavy product. Farm stocks are tight leading to a slim carryout which could put a little pressure on new crop if there are any issues. Right now, all eyes turn to the skies to see how things will play out because so far, the oat crop is looking good.

Recent US weather forecast was positive for crop development and sent soybean futures tumbling after a recent run-up. Cash sales are indexing with easing futures prices. Just as in most years, soybean futures are currently trading a weather market and will surge and slide with the weather radar. Local soybean bids continue to hover around $10.00/bu picked up depending on location. Still good opportunities to contract new crop faba bids at $8.00/bu for #2 export quality. The acreage increase in dry beans is old news. Dry bean production will still be a question mark as we move through summer and into harvest. If seeded acres and crop intentions come to fruition, one can expect some pressure on local cash bids.

Chickpea markets maintain tone this past week. Despite both Canada and the US reporting lower acres overall, but higher than expected, the values have not changed. Canadian export data revealed the year-to-date export volume at only 91,000 MTS vs 130,000 MTS in 2018/19 crop year. Additionally, the US stocks to date are reporting 12% more than this time last year coming in at 196,000 MTS. According to StatsCan, as of late June, 75% of the chickpea crop was rated good/excellent compared to last year at 59% and the 10-year average of 63%. The producer’s reluctance to sell has kept values steady to date but any bump in the price could trigger selling and in turn soften those values beyond todays bid.

Wheat markets remain steady as we continue through the summer months and watch how weather will have an effect on quality. The hot and humid conditions are an ideal scenario for fusarium and concerns are growing on how being 10-14 days behind a typical growth year might play out. Old crop 12.5% – 13.5% pro HRSW prices range from $5.75 – $6.25/bu delivered into plant with Aug-September movement. Feed wheat prices are ranging from $5.00-$5.40/bu picked up on the farm for July/Aug movement.

Feed barley prices have begun to drop off as we approach the new crop year. Bids for heavy and dry feed barley are ranging between $4.00-$4.25/bushel FOB farm depending on location. Most of this barley is heading to southern Alberta so the further west you’re located, the better the price. We have been able to get some moved in July still, but that window will be closing very quickly. New crop feed barley bids are around as well, and we have seen up to $4.00/bushel FOB farm on the west side for movement in the fall.

Spot prices have come off a bit on canary as prompt windows to move product slowly dry up. We still have some buyers that would look at up to 28 cents for movement in late summer, but if bin space in July is what you want you may have to swallow prices closer to 26-27 cents/lb picked up on yard. Not bad compared to the 21 to 25 cent range we have grown accustomed to over the past 5 years. The new crop prices are holding up at solid levels still, with 26 cents at the farm for Sept to December including an act of God as a tradable number in most areas. Stocks are fairly tight, we think, so if weather issues kick in, we may see some upward price trend. Keep in mind bird food is one of those markets that seems to have fairly easy replacements so canary will likely follow what millet and the other bird food commodities do.

It’s been over a week since the acreage report came out on mustard, surprising most in the business as to how the low the number was. In the time since, we have seen a firming in prices, and modest moves slightly higher in some areas. Yellow mustard is now up at 38 to 39 cents for spot. New crop has moved higher and has a 40-cent bid now for full crop year movement. Spot oriental mustard sits at 26 cents for Forge and 25 cents for Cutlass; summer movement from June to July. New crop is stable at 30 cents FOB for Forge or Vulcan and 28 cents now for Cutlass. Brown trades have jumped to 30 cents FOB for spot and now up as high as 32 cents for new crop with September to July movement. Call your merchant with any offers on new crop and discuss options on new crop and old.

Rayglen Market Comments are for informational purposes only. Rayglen Commodities and its agents or employees shall not be liable for any loss or damage suffered by any person as a result of reliance on any of the contents contained within these products, whether such loss or damage arises from negligence or misrepresentation or any act or omission of its agents or employees.

Pricing remains elevated for old crop milling oats at $4.65/bu delivered in. These prices should maintain as long as the demand is still there. If you’re looking ahead to new crop, $3.50 – $3.60/bu delivered into Manitoba is the going rate right now with the latter for pushed out movement into 2021. We continue to also see feed hold value at $2.50 – $3.00/bu FOB farm. A little tidbit of information from StatsCan, they pegged the oat acres to jump up 6.5% from the average. Saskatchewan continues to lead the pack in acres increasing 3.3% to 1.9 million acres versus the total oat seeded acres at 3.8 million.

Flax prices remain similar to previous weeks even after the StatsCan report came out earlier this week. Flax acres have a projected increase from 2019 acres, however with the tight supplies going into the new crop year, prices are being supported. There are still firm bids for milling quality flax, at the same time, the exports are slowing, and the market will start to shift into new crop pricing. The only indication for new crop prices to trend up would be lower than expected yields or lower acreage than reported. On the other hand, upside could be limited to a bigger Black Sea crop. New crop flax prices are currently at $13.00/bu picked up with an act of God.

The pea market has hit a bit of a slump this week, which was expected. Old crop and new crop values have edged closer and right now it is normal to see a seasonal lull. It is getting harder to find $7/bu yellow peas today, with most bids closer to $6.75/bu FOB. Green peas are trading at $10.00/bu delivered and maple peas also edged lower to $8.00-8.50/bu FOB. The updated StatsCan report came out and peas are still sitting at 4.2 mil acres. Therefore, if China continues to import at current levels then our 2020/2021 supplies will end up being tighter. New crop values are at $7.00/bu on yellows and $8.50/bu on both green and maple peas.

StatsCan updated numbers are posted and wheat acres have increased compared to last year but have been adjusted lower from the May acreage report. Wheat is sitting at 25,188 mil acres with durum and winter wheat acres increasing and spring wheat down from last year. The feed market has been trading at competitive values, which resulted in a good chunk of lower quality wheat and durum getting moved into the feed lots. Feed values are trading around $5.00 – 5.40/bu FOB with no dockage being deducted. New crop feed wheat values are trading around $4.85/bu picked up. If you have some lower quality wheat and durum in the bins that you are wanting moved before the harvest rush, let us know as we still have some prompt movement options available.

Statcan reported chickpea acres slightly up from their original report in late May from 255k to 298k acres on June 29^th.  This does not come as a surprise as growers may have reduced their acres but not taken them out of rotation entirely. Positive weather reports are showing the drier areas of Western Canada are finally getting a drink from mother nature. Not sure if it is a little too late to reverse the yield but it is welcome. There is still a bullish feel to the market, but buyers are in no rush to push demand as we move through the motions of summer. Old crop values hold around $0.27-0.28/lb and new crop slightly below that with an AOG.

Canola futures start the week out strong with a $5/MT gain on Monday. Today (Tuesday) as we write, the market seems to be holding those gains. Support comes from lower planted acreage than 2019, despite StatsCan increasing their numbers from the march report. StatsCan currently has acreage pegged at 20.8MMT. Support today comes from strong soybean with China showing demand in that market. Producer bids delivered into plant are very similar to last week, sitting as high as $10.45/bu in northwest Sask and down to $10.15/bu range in southeast Sask. Call for a firm bid on your farm.

The canary seed market is still holding up pretty strong in recent weeks with bids at 27 to 28 cents/lb picked up on yard still available for summer timelines. New crop prices on canary are 25 to 26 cents on farm with act of God for Sept-Dec movement period. Historically, these are strong-ish spot and new crop values. We are seeing some sellers take advantage of these bids while the iron is hot, so to speak, as the canary market can be a very tough sell when said iron has gone cold. The seeded acreage report shows that canary acres are pretty much sideways from recent years at a projected 268,000 ac, slightly down from May’s 276,000. Seeded canary was 269,000 in 2018 and 243,000 in 2019 so you get the idea, sideways.

The soy complex recently followed corn markets higher despite concerns that more US acreage may go into soybeans this year. Strong crop conditions and potentially good yields may weigh on markets in the coming weeks. Over 160,000 bushels of soybeans were exported to China last week. While the movement was welcomed by U.S. exporters and growers, the volume remains woefully below Phase 1 commitment levels. Local soybean bids continue to hover around $10.00/bu picked up depending on location. New crop faba bids are in the range of $8.00/bu for #2 export quality. This is would be in line with long term new crop bids and represents an opportunity for growers. Firm prices available for any old crop dry bean inventory based on last year’s North American production shortfall. New largely contracted and acres are anticipated to be up 12% year over year.

The StatsCan report came out on Monday morning……and there was a big development concerning mustard. The May 7^th report had acres at 395,000 and the new report on June 29^th has acres at 257,000. This was a very surprising and dramatic drop which definitely raises some eyebrows. Is this a bit low? Either way, there has been a little bit of reaction in higher prices. Yellow mustard is now up at 38 to 39 cents for spot and new crop. Please show your merchant any offers at 40. Spot oriental mustard sits at 26 cents for Forge and 25 cents for Cutlass; summer movement from June to July. New crop is up at 30 cents FOB for Forge or Vulcan and up to 28 cents now for Cutlass. Brown trades have jumped to 30 cents FOB for spot and as high as 31 cents for new crop. Call your merchant with any offers on new crop and discuss the acreage report just out.

Feed barley prices have stayed strong this week again. Heavy and dry feed barley is still trading anywhere from $4.10-$4.50/bu FOB farm, with movement being pushed into August now. The majority of this barley is heading into southern Alberta so freight gets better the further west you are located. We have pricing available for light or tough barley with reasonable discounts to be applied as well. The malt industry is quiet for old crop, but we do have some buyers looking for a bit of Copeland at $4.60/bu delivered to the plant in south central Saskatchewan.

The StatsCan acreage report was released this week with no real surprises. With the increase in lentil prices just before seeding, the report saw a 500,000 acreage increase in seeded acres. The breakdown is 2,581,000 of reds, 907,000 large greens and 256,000 small greens. Reds saw the biggest increase while large greens remained the same as last year, and small green acres were reduced by 100,000 in Saskatchewan. Alberta saw an increase in reds lentil by approximately 80,000 acres, large greens at 40,000 acres with a decrease of 5,000 acres. These numbers will likely change a little come the August report and we expect the overall lentil number to increase slightly, with the major change in reds lentils. These numbers were expected by most in the industry therefor the market has not been affected this week. Prices remain flat with reds trading around the 31 cent market, large green lentils 31 for a #2, and small green lentils 29 cents. New crop pricing also remains stable with reds trading around 25-26 cents with an act of God, large green lentils 29-30 cents for a #2, small green lentils 27 cents.

Rayglen Market Comments are for informational purposes only. Rayglen Commodities and its agents or employees shall not be liable for any loss or damage suffered by any person as a result of reliance on any of the contents contained within these products, whether such loss or damage arises from negligence or misrepresentation or any act or omission of its agents or employees.

Canola took a little dip in price the last few days but has s rebounded quite nicely this morning. As we write, July futures sit at $474.20/MT. This puts spot bids on canola around $10.33/bu delivered assuming a $20/MT under basis level. Recently, depending on delivery location, basis levels do fluctuate quite drastically so it’s best to call the office to get a firm delivered or FOB farm bid. The Canadian and USA acreage reports will be coming out next week and will be watched very carefully. The canola market will most likely follow the direction of soybean markets as it usually does, so keep an eye on those reports to offer some direction to canola. There has been technical resistance at canola trading over $480.00/MT.

Large green lentils got some renewed interest over the past couple of days, as buyers try to fill #2 quality orders. Bids as high as 32 cents FOB farm were seen and may still trade today on firm offer. As for other grades, we haven’t seen a lot of action, but X3 were trading around 24 cents FOB farm. New crop large greens still trading 30 cents for #1 and 28 for a #2 with an act of God. Buyers are still looking for new and old crop small green lentils as well, and spot reds continue to trade around the 30-cent mark. New crop reds remain bid at 25 to 26 cents with an Act of God. As we head into July lentil crops, for the most, part look good. A few concerns have popped up that disease may become an issue the crop doesn’t see some heat to dry things out, but generally things look good. Next week the seeded acreage report will be released, and this will give us a better idea of how many lentils went into the ground and how much of each variety. Feeling is that due to the late shipping frenzy that ending stocks will be lower than expected which will be the counterbalance to an increase in seeded acres, therefor, price should remain stable.

Wheat reports are a bit of a mixed bag all around. US spring wheat conditions dropped to 75% good to excellent with North Dakota dropping to 69% good to excellent as they’re having issues with heat stress. In Canada, 65% of the crop is fine with a 25%/10% split between dry and moist conditions. In the meantime, Russia looks to pummel the market with product as cheap as they can to move their accumulating stash. Last but not least, let’s not forget Australia, who is anticipating stronger yields after being out of the mix the last couple of years. So, how does this translate to pricing? Well, new crop values are weak which is pretty standard for this time of year anyhow. Old crop 12.5% – 13.5% pro HRSW prices range from $6.15 – $6.50/bu delivered into plant with Aug movement, though, most are looking for as close to $7 as they can get. On the feed side, wheat continues to hold its own at $5.00 – $5.45/bu FOB farm even with pressure from corn.

Flax exports remain strong, which will mean minimal supplies of carry-over into the 2020 crop year. Both StatsCan and USDA reports come out next week. Although North American supplies are forecasted to be tight going into the 2020 crop year, the global market is not in panic mode.  The Black Sea region is once again expected to have a fair-sized crop that will fill more European and Chinese demand. Crop conditions in the Kazakh growing regions have been favorable. There have been reports of Saskatchewan flax crop conditions declining over the last couple of weeks. It is still early in the season and rebounds are possible, but it just means moderate acreage for 2020. The highs in flax prices we have seen over the last month are starting to shift towards new crop bids.  If you still have flax in the bin you need to move this summer, there is still room available.

A bit of bullish news for chickpeas growers as producers are reporting both drier than usual conditions – which makes for smaller caliber chickpeas and low yield – and wet conditions in pockets of the province which can make way for disease. In addition, both Canada and the US reported drastic reduction in chickpea acres ranging from 30-35%. Those two points combined could shed new light on the chickpea markets. In bearish news, Mexico reported a slightly higher than 5-year average yield on their harvest and Russia continues to pump out chickpeas at the pace to set records for the 2019/20 year. Also, you’ve heard it before, there is still a large carry to chew through before we see any big change. Watch for occasional bumps if you are in a position where you need to make space or set a target to show the buyers your hard line. Expect more clarity on the Canadian acres with next weeks Statscan report.

The pea market has been much quieter in the past couple weeks. Green pea spot prices are trading still around $11/bu as a delivered to plant price on #2 quality with low bleach. Finding bids on higher bleach product is tougher right now as the trades are few and far between so the blending capacity is just not much of an option these days. Fall prices on green peas are around $8.50/bu at this time. New and old crop yellow peas have come a little closer to lining up this week and bids are generally around $7.00/bu. Old crop is still catching the occasional $7.50/bu number out there, so make sure you have your targets in. We have had a bit of maple pea interest from sellers trying to clear some bin space with grower targets at $9/bu, but most buyer bids closer to $8.50/bu. Overall crop looks pretty good at this time, a few areas need some dry weather and a few areas need some rain, but you see that contrast every year.

Feed barley values are holding their strength this week. For heavy and dry barley, prices range between $4.10-$4.50/bu FOB farm with options still available for July movement. Much of the barley is heading west into Alberta so, pricing is best the closer you’re located to southern Alberta. Bids for tough and light product are available based on discount schedules we can provide before booking. For malt barley, we have a buyer still looking for some old crop Copeland at $4.60/bu delivered to the plant in south central Saskatchewan. This could be a good option for anyone close by.

The old crop oats market has stayed strong due to a shortage of high-quality milling oats on farm. If you do have some #2 oats in the bin, opportunities exist as high as $4.50/bu for delivery into Manitoba. Freight can always be worked back for a price picked up on your farm. With acres increasing, we have a seen a big price drop for new crop milling oats, which falls in line with more average pricing at around $3.50/bu delivered to plant. For heavy and dry feed oats, values range from $2.60-$3.00/bu FOB farm depending on location. Pricing is best the closer you are to southern Manitoba.

We have been going strong on calling growers on contracted mustard acres. The reports are generally good, but there are some trouble spots where flea beetles and dry conditions have really hurt the germination. Canola and mustard, of course, are reporting the same results in these areas. The good news is, there are not too many and lots of growers seem pleased with the starts of their mustard crops. Yellow mustard remains solid at 37 to 38 cents for spot and new crop. Spot oriental mustard sits at 26 cents for Forge and 25 cents for Cutlass; summer movement from June to July. New crop is sitting at 29 cents FOB for Forge or Vulcan and 27 cents now for Cutlass. Brown trades at 27 to 28 cents FOB for spot and as high as 30 cents for new crop. Call your merchant with any offers on new crop, as perhaps this may be a good time to book, considering the start the crops have had.

The USDA indicated that pointed comments from the White House and an increasingly shaky trade deal motivated China to purchase 4.8 million bushels of 2020/21 soybeans from the United States yesterday. It is speculated that China has been the unidentified buyer who last month bought 21.0 million bushels of 2019/20 soybeans and 81.1 million bushels of 2020/21 of US origin soybeans. Local soybean bids continue to hover around $10.00/bu picked up depending on location. New crop faba bids are in the range of $8.00/bu for #2 export quality. This is would be in line with long term new crop bids and represents an opportunity for growers. Firm prices available for any old crop dry bean inventory based on last year’s North American production shortfall. New largely contracted and acres are anticipated to be up 12% year over year.

Old crop canary seed continues to trade sideways again this week at 27-28c/lb picked up on farm with movement ranging anywhere from July – Sept. New crop prices are sitting at 26c/lb picked up on farm with and Act of God for Sept- Dec movement. With very tight ending stocks we should see old and new crop numbers stay somewhat steady and soon merge moving forward. Seeding is wrapped up, so now we turn and keeping eyes on the sky to see how yields turn out.

Rayglen Market Comments are for informational purposes only. Rayglen Commodities and its agents or employees shall not be liable for any loss or damage suffered by any person as a result of reliance on any of the contents contained within these products, whether such loss or damage arises from negligence or misrepresentation or any act or omission of its agents or employees.

As of June, lentil crops are sitting much more comfortably compared to last year at this time. Most areas have seen some moisture and lentils are rated at 77% good to excellent, compared to 36% the previous year. We are still expecting StatsCan to raise the seeded acres numbers for the 2020-2021 season, but large volumes of inventory moving late this year should keep carry out down and supplies at bay; depending on our crop outcome of course. Prices haven’t changed a whole lot into this week. Red lentils are trading at 28-30 cents on a #2 for old crop, while new crop sits at 25-26 cents picked up with AOG. Large green lentils are quoted at 30 cents on a #2 with new crop at 27-28 cents on a #2 with an act of God. Old crop small green lentil trades have gone quiet with #1’s getting harder to find and being quoted at 29 cents. New crop trades at 26 cents on a #1 FOB farm with full AOG. 

Feed barley is still trading at competitive values this week. As long as product is heavy and dry, we are seeing $3.90-$4.50/bu picked up on farm, with the stronger values being seen in south west Saskatchewan. If you happen to have spring threshed sitting around, we do also have buyers and just need to know the specs such as weight, moisture and excreta percentage to get you a firm bid. On the malt side, we have a buyer looking for some old crop Copeland at $4.60/bu delivered to south central Saskatchewan; picked up pricing is also available. Malt shipments this year continue to be delayed due to Covid, which is slowing down usage and therefore movement. New crop malt barley has been a little quiet as of late, with no real bids to speak of, but if you have targets in mind, we can always throw them out and see what kind of response we get back.

Before a number of locations where jolted with the rain last weekend and throughout this week, dry conditions where creating issues with crop emergence. Reports suggest this was especially the case in flax with 21% still reported in the seedling stage here in Sask. Now, with rain having fallen in a good number of locations, most areas should see these numbers pull along nicely. As it sits, new crop brown flax prices are trading around $13/bu FOB farm with an act of god, but we have seen firm targets trade at slightly higher values. Short supply continues to prop up spot brown flax and we continue to see strong pricing, up to $16/bu FOB on milling quality. As well, continue to show us spring threshed and off grade flax as they too continue to fetch attractive prices compared to past years due to tighter supplies on flax as a whole. With new crop approaching and closing the gap with old we may see buyers a little more reluctant to chase prices to much higher.

Over the last couple weeks, July canola futures have been on the rise. This morning at the time of writing, they trade at $474.40/MT. With an average basis level of say, $20/MT under, that puts spot purchases around $10.30/bu delivered to plant. The canola futures are being supported by soybean markets as of late and we hope to see continued strength across that complex. With that being said, the canola crush margins have all but dried up due to soybean oil prices and a stronger Canadian dollar. This is holding any gains to the modest side for now.

Wheat futures are mostly unchanged from last week. As US harvest progresses, market pressure will continue for the next couple of weeks. So far reports of the quality of US 2020 Hard Red Winter wheat crop is good condition with better than expected yields, but protein could be lower than average. Stress usually coincides with stronger proteins: South east Sask and West North Dakota will get more accurate protein levels into July. CWRS with 13-13.5% protein is likely to stay in the $6.00 -$7.00/bu range as far as prices go. If Russia exports are higher in 2020/2021, then we could see some rallies on price.  Feed wheat prices continue to hold strong this week, with markets ranging from $5.00-$5.40/bu picked up.  New crop pricing is lower, so it’s a good opportunity to move product out of the bins as movement on old crop is already pushing into August.

Canary seed has maintained its strength this week in both old and new crop markets. Old crop is being bid at 27 cents/lb FOB farm, while new crop rose slightly to 26 cents/lb FOB farm with an AOG for a Sept-Dec movement period. Rising new crop pricing shows some positivity for the upcoming canary crop. It may suggest that acres haven’t increased as much as some in the industry initially expected. Add that to expected seasonal export strength of lower on farm stocks and you can see why people are getting more bullish on canary prices for the upcoming crop year.

Chickpeas maintain a steady tone this week as weather moves across the majority of western Canada. There have been a few suggested reports that there is too much moisture right now and if it continues it could affect the yield in a negative way. This has not translated in a change to values but worth mentioning. Old crop #2 Kabuli values at $0.27/lb FOB farm and new crop about the same for a delivered plant price. While there are not a lot of growers left in the country growing Frontiers there are still some bins with carry from previous year to move. Bids for small caliber come in around $0.20/lb FOB farm and no bid on new crop. Desi’s are still the silent player in chickpeas as India reports 35% higher than average monsoons to support their production. Sample and feed quality have been trading steadily at $0.12/lb with wiggle room depending on down grading factors. All eyes on the weather!

The oats market is in short supply this spring so prices remain very high for those that may still have product in the bin. Bids delivered on #2 milling oats range north of $4.50/bu still this week and buyers have said if you have product, just show them an offer. Most of the delivery locations are far out east but we can work up a price FOB farm as well.  Oat acres have seen a bit of an increase from last year and the new crop prices show it, with a full buck fall off from current prices. These are still not terrible prices for oats historically as we have often seen bids on new crop struggling to catch $3/bu delivered in. Comparatively a $3.50/bu new crop price for winter 20/21 does not seem like the worst option to lock in today on a milling quality #2 Canada. Feed bids on oats still range from $2.50 to $3/bu FOB farm depending on farm location and other product specs like bushel weight.

The pea market continues to be quiet as old and new crop prices start to converge. As we head into the summer months expect markets to remain quiet as most countries will wait for new crop before making any more large purchases. If looking to move old crop peas, you can still find a home for yellow and greens, but maples and dun peas are a little harder to market right now. Yellows are trading between $7.25 to $7.50 and green peas $9.00 to $10.00/bu. New crop yellows are trading around the $7.00 mark and green peas $8.50/bu.  New crop maples are sitting at $9.00/bu. All are quoted as FOB farm including AOG. The Canadian pea exports have been going mostly to China, Bangladesh and Nepal which has helped shrink our ending stocks for this year. The news of lower ending stocks should help keep prices stable.

The province has picked up some rain over the past week in mustard growing areas. Growers are reporting good starts so far in southwestern Saskatchewan and southeastern Alberta, which are both very heavy mustard growing areas. Besides flea beetle pressure and few areas in southern Alberta that required re-seeding, moisture has not been too much an issue so far. There are pockets of dry areas in the southwest, but generally ok. Yellow mustard remains solid at 37 to 38 cents for spot and new crop. Spot oriental mustard sits at 26 cents for Forge and 25 cents for Cutlass; summer movement from June to July. New crop is sitting at 29 cents FOB for Forge or Vulcan and 27 cents now for Cutlass. Brown trades at 27 to 28 cents FOB for spot and as high as 30 cents for new crop. Call your merchant with any offers on new crop, as perhaps this may be a good time to book, considering the start the crops have had.

Soybean futures traded lower on uncertainty over Chinese demand. As new hog operations came online in May, the Chinese pig herd grew 3.9% from April 2020 inventories. A larger hog herd requires more soybean meal, which is great news for soybean producers as it increases the likelihood that China will increase purchases to feed the growing herd. Local soybean bids continue to hover around $10.00/bu picked up depending on location. New crop faba bids are in the range of $8.00/bu for #2 export quality. This is would be in line with long term new crop bids and represents an opportunity for growers. Firm prices available for any old crop dry bean inventory based on last years North American production shortfall. New largely contracted and acres are anticipated to be up 12% year over year.

Rayglen Market Comments are for informational purposes only. Rayglen Commodities and its agents or employees shall not be liable for any loss or damage suffered by any person as a result of reliance on any of the contents contained within these products, whether such loss or damage arises from negligence or misrepresentation or any act or omission of its agents or employees.