Soybeans futures are up today from yesterday’s USDA report induced setbacks. The USDA surprised trade expectations by forecasting the US 2017-18 soybean production to be a record large crop; a 50 million bushel bump from the August forecast. Yield was bumped up 0.5 bushels to 49.9 bu/acre, which is still down 2.2 bushels from 2016-17. A significant bright spot for soybean futures is the anticipated implemented changes to the U.S. biodiesel tax credit. It is expected that the Trump administration will renew the expired credit and switch it to a producer’s credit, which should create 600 to 800 million pounds of additional domestic derived soybean oil demand. Local soybean bids are in the $10.25- $10.50/bu FOB farm range. Faba bean supplies continue to be scarce and prices across the Prairies remained largely unchanged in the $6.50/bu delivered range.
Rayglen Market Comments – September 6, 2017
September 6, 2017Not a lot of change in pea markets from last week. Canada appears to be well-balanced, in relation to world markets, according to a stat report. Despite larger Indian and Black Sea supplies, the US market is reporting much smaller crops. This offset in supply is holding yellow pea pricing fairly firm during this expected seasonal lull. For green peas, pricing is looking positive. However, a stat report is expecting green pea gains to be gradual rather than a sharp spike up. Right now, yellow peas are trading closer to $7.50/bu picked up while green peas are trading at $8.00/bu FOB. We do still have options for more aggressive yellow pea pricing with movement pushed to the new year, contact your merchant for details.
Rayglen Market Comments – August 30, 2017
August 30, 2017Chickpea prices are strong this week once again, even with an estimated increase in US acres from the latest USDA report. Yields, however, are estimated to be 5% below the 5-year average. Canadian chickpea yields are expected to be 10% below the 5-year average, along with seed size being a concern. Overall this puts the 2017 Canadian chickpea crop at 120,000MT compared to 135,000MT in 2016. There will be less US demand and a heavier portion of supply going overseas. The gain in prices over the last few weeks are mainly seen in large calibre, which could mean the dry conditions are producing smaller sized chickpeas. If acreage in Mexico and India respond to these high chickpea prices, then we could see bids soften in the second half of 2017/18. We are seeing the market hover around 63c/lb this week for #2 quality.
Rayglen Market Comments – August 23, 2017
August 23, 2017Pricing on peas has remained sideways during the past week. Green peas are showing a little more life than yellows, which was to be expected and a nice change. Reading through a Stat report, pricing is likely to stay flat until Black Sea peas have been moved through India. Until then, the pea market will remain quiet and have the potential to trend lower. Looking at the Canadian market, pricing will firm up later into the marketing year, but it is unsure if a large rally will take place. Currently, we have green peas trading at $8.50/bu delivered and yellow peas are closer to low eights/high sevens.
Rayglen Market Comments – August 16, 2017
August 16, 2017Wheat futures have taken a tumble since the USDA crop production and supply/demand report was released last Thursday. US spring wheat production was pegged at 402 million bushels, down 21 million bushels from the latest estimate in July. This was a smaller drop than was expected due drought currently taking place in the northern states. This has resulted in Minneapolis spring wheat futures to fall $0.75 as of Tuesday. Despite low production in the US, global wheat production is making up for it, especially in the Black Sea region. If you have any max 1 PPM feed wheat left in the bins we still have some opportunities around $5.00/bu picked up in the yard so be sure to give us a call.
Rayglen Market Comments – August 9, 2017
August 9, 2017Reports suggest there is a large amount of uncertainty about the size of this year’s chickpea crop. Alberta planted a surprising number of chickpeas that had analysts adjusting their seeded acre estimates, as many believed the reports were too low. Looking at the chickpeas, they seem to be holding up quite well with some decent early yield reports despite the dry conditions that exist. Right now, values are still strong, which shows that supplies remain tight. Bids are expected to continue firm, but there is the potential for increased acreage in India and Mexico due to the strong price environment. This increase for the winter crops could cause the market to soften.
Rayglen Market Comments – August 2, 2017
August 2, 2017Buyers are still very bullish on chickpeas this week, which we suspect is due to current drought conditions across much of the prairies and the USA.
Rayglen Market Comments – July 26, 2017
July 26, 2017There has been limited change on the pea markets this week; compared to last. Looking at the crop conditions, the US is in significantly worse shape than Saskatchewan and Alberta. We have many spots in Saskatchewan that are quite dry. However, peas seem to be performing well, for the most part, since they aren’t grown in the driest southern areas. Reading through a Stat report, the Saskatchewan pea crop is rated 66% good to excellent. Moisture stress seems to be a common theme and isn’t only affecting North America. Australia’s pea crop is also down from last year and if rain doesn’t show up soon, production estimates may have to be trimmed further. With these weather issues there still seems to be little price response with old crop pricing coming closer to matching new crop values. Green peas are sitting at $8.00/bu picked up and select areas are showing $8.50/bu picked up on yellow peas.
Rayglen Market Comments – July 19, 2017
July 19, 2017Wheat has been the main topic in the office this week, mainly focusing on new crop durum values. With very low precipitation this year in key durum growing areas, the market is reacting and prices are rising. Another positive of little moisture this year is we shouldn’t see as much disease in the durum compared to last year when too much moisture was a concern. There are a few different options on new crop durum, so if you are interested, make sure to call your merchant or the office. Feed wheat is still holding strong and depending on the area, specs, and type of wheat you have, values will vary. There are also significant premiums on low vomi feed wheat (under 1 ppm vomi).
Rayglen Market Comments – July 12, 2017
July 12, 2017Soybean futures hit a four-month high Tuesday on worries about stressful crop weather in the Midwest and as traders squared positions one day ahead of monthly reports from the U.S. Department of Agriculture. August beans gained 4 ½ cents to $10.29 ¼ and November added 4 cents to $10.43 ¼. After Tuesday’s gains the market of course did some correcting back down 8.4 cents Wednesday. Locally, the pricing works out to better than $11/bu picked up in the yard for any remaining product in the bin with a couple different buyers saying they are looking for firm offers on product to move quite quickly. More heat and dryness through the Midwest US will most likely keep support for the futures for the time being as we make our way through this cropping season.