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Rayglen Market Comments – June 16, 2021

The lentil market has been softening on the notion of a few areas catching rain and new crop approaching quickly. India’s red lentil prices have also pulled back from their recent highs, as we anxiously wait to hear whether or not the Indian government will reduce lentil tariffs. Current pricing on red lentils is sitting at $0.34-$0.35/lb delivered, with new crop values at $0.31-$0.32/lb FOB farm, with an act of God. Large greens are priced at $0.38/lb delivered for old crop and $0.35-$0.36/lb FOB farm on new crop with AOG. Small green lentil trades have been a bit quieter over the past couple of weeks, but there are interested buyers. Old crop bids have settled out around $0.34/lb delivered, while new crop values are indicated at $0.32/lb on farm with an act of God. It is key to note that in any case buying positions are not deep. Once buyers secure enough tonnage on their sale, pricing seems to fade almost immediately, so those sitting on the fence may want to consider making sales while these values are still attainable.

Oats remain to be small talk in the world of grain lately as demand for milling quality is mostly pushed out until the harvest months. That said, there might still be a window of opportunity to let some go before new crop hits the bin, but we suspect bids to be around that $3.00/bu range give or take a few cents. There continues to be some movement into the feed market for oats, but buyers are looking for heavy product with little interest in light weight. New crop milling oats are sitting around the $4.25/bu mark delivered into Southern Manitoba with values increasing a bit if you push delivery into 2022. At the bin pricing is available so reach out to a merchant for a firm value on your farm. We do not expect old crop values to go any higher from now until August, so we highly suggest if you need it out of the bin before harvest to start looking for sales now. The other option: carry it over and see what we are dealing with after the 2021 crop is harvested.

Flax acreage estimates from both StatsCan, and the USDA will come out in the last week of June, but analysts are not expecting any big changes from previous reports. April showed a drop in exports of Canadian flax to Europe and China, while shipments to the US were steady. Exports will continue to drop for the next coming months due to limited supply. Russian analysts issued a 2021 flax forecast of 850,000 tonnes, up from 788,000 tonnes compared to last year. While Russian exports could have new records for 2021/22, there are areas in Siberia with dry conditions, so these predictions are still early. New crop prices remain strong at $18-$18.50/bu picked up with an act of God. For those with flax in the bins, let us know what you have as we still have buyers looking.

The canola market is taking another hit Wednesday morning, down almost $30/MT on the nearby and $21/MT on new crop. This follows a string of down days as the canola market trails weakness in soybeans coupled with recent rains that have our crops looking a little better. Warm and windy weather may taper some of the losses though, if Mother Nature doesn’t smarten up soon. Nearby basis levels have not fallen to pieces yet and new crop levels are stronger than normal, which lends to the thought that there should still be some support for this market in one way or another. With the added moisture of recent weeks, we have saw some increased selling in certain areas for new crop production as sales in the $16 to $17/bu range is a great spot to take the top off on a low risk 10 bushel or so position. If you have not made any sales yet a small position may be a prudent move.

Barley crops look to be off to a decent start this year with most areas catching some rain over the past few weeks. It does not go unnoted that soaring temperatures and strong winds won’t take long to dry out fields again, but we all hope to see a few more showers before that happens. Spot bids have held up relatively well considering, and new crop prices are still holding strong as corn and wheat values remain high. Demand for old crop has fallen off a bit and buyers don’t seem as aggressive as they once were, but there are still opportunities to make profitable sales. With new crop around the corner, some demand softness likely comes from curiosity of what this year will bring. Today, new crop prices are between $5-5.50/bu FOB farm for Sept.-Dec. movement. Old crop bids are sitting around $6.15-6.70/bu FOB farm for Summertime movement. Offers are a good way to show buyers what you have and to try and squeeze a bit more value out of your product. Keep this in mind when marketing now and in the future.

Chickpea exports were reported to be up to 102K MT for the year compared to 84K MT last year. This will reduce the amount of carry expected for 2022, but still leave a substantial amount on farm. The main buyer remains to be Pakistan, but Syria and Lebanon are also in the mix. Sask. Ag’s first crop report slated chickpeas thus far to be 68% good/excellent which is below last year’s 76% for the same time frame. The general feel is an expected increase in chickpea values, but this looks to be a long climb vs a jump. Current new crop and old crop values hover at $0.35/lb FOB farm with an AOG on new crop. Sample/feed values, depending on downgrading factor, are indicated at $0.22/lb today. New crop Desi chickpeas have recently peaked one buyer’s interest for #2 or better quality at $0.30/lb FOB farm including AOG. Bids are freight sensitive, so please call with location if interested. Lastly, if you already have acres booked, don’t forget to submit your land locations to secure your AOG.

The milling wheat market has been stable over the last while, trading between $8.70 to $8.75/bu delivered for #1 CWRS on August delivery. Production opportunities are a touch softer, being bid at $8.50 to $8.70/bu for Nov./Dec. movement. The milling durum market continues to capture sales in extreme SE Sask. with buying taking place between $9.00 and $9.50/bu FOB farm for late Summer/early Fall movement. Unfortunately, we just haven’t seen the same demand outside of that Southeast pocket, but growers are encouraged to post realistic offers in their area to try and capture some of this demand. Feed wheat values have softened a touch this week and have now been trading between $7.50 to $8.35/bu FOB farm. Western SK. and Alberta have seen the highest indications of feed due to their closer proximity to feedlot alley.

Soybean futures continue to regress due to anticipated promising weather and reducing US crush rates. High prices have caused local soybean demand to wane. Best play at this point is to use target price offers to attract buyer interest. The feed market has kept faba beans well supported thus far. Old crop fabas are trading between $8.50-$9.00/bu FOB farm, location dependent. New crop #2 export quality fabas are hovering right around $8.50/bu FOB farm. Dry bean prices remain well supported for remaining inventories, both North and South of the 49th. A reduction in seeded acres and challenging growing conditions in the Northern states have offered strength to new crop opportunities.

Mustard prices continue to be stable and strong this week with no changes to report. Yellow mustard is right around 50 cents/lb FOB farm for both old and new crop. Brown mustard is at 41 cents/lb FOB farm for old and new crop. Rounding things out, Oriental mustard is at 35 cents/lb FOB farm for Forge/Vulcan varieties and 33 cents/lb FOB farm for Cutlass on both old and new crop. All new crop contracts include an AOG on 10 bu/acre. Some much-needed rains in the last few weeks across the Prairies, as well as strong prices are creating some profitable opportunities that are worth a look. If you have a partial load in the bin don’t be shy to call in as we have a number of buyers willing to make the freight work at these top prices.

Peas have settled back down after seeing a little uptick last week.  There are a few bids left at $10.00/bu FOB for yellows in the right location and growers outside the wheelhouse are encouraged to try to create an offer. Green peas have settled back to that $9.50/bu delivered mark. When talking with buyers this week, it is reported that there is very little demand coming out of China right now, which is keeping the market subdued. Reports suggest that the increased green pea demand and value over the last couple of weeks was due to product being bought to go into Nepal. Now that prices have settled, we can infer they were not looking for many tons and that the shipping window was fairly tight as well.  The market will remain unsettled as demand at this time of year is normally relatively quiet.

Canaryseed values continue their trek sideways this week. Bids remain unchanged while demand seems to be softer than just a few weeks prior. This could be a sign that it is time to get those bins cleaned out and new crop on the books before harvest hits, as we restock the shelf and buyers reposition themselves. Old crop values are quoted as high as 35.5 cents/lb delivered with new crop being bid at only a slight discount, to 33.5 cents/lb.  New crop contracts still contain a full act of God clause which seriously alleviates the risk of dry conditions, hail and any other “out of your control” threats. Getting 10bu/ac on the books at historically strong values is recommended to start putting some profit in your pocket, secure shipment windows and create bin space.

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.


Rayglen Market Comments – June 9, 2021

There were a couple of positive changes in pea values late last week, with both green and yellow peas making small moves. Yellows crept back to $10/bu FOB in Central and North Central Sask., while green peas saw a short-lived uptick to $10/bu FOB in Southeast Sask. Today, yellow pea bids remain at a similar range in those areas but posted bids on green peas have taken a step back to their comfort levels of $9.00-$9.50/bu FOB. Many growers are actively targeting $10/bu on farm for their greens now, but buyers don’t seem to be interested in those levels today. New crop has not seen any changes with yellow peas at $8.50 – $9.00/bu FOB, greens at $9.00/bu FOB and maples indicated at $9 – $9.50/bu FOB, all including an act of God. As of late May, the Saskatchewan pea crop was rated at 67% good or excellent which is below last year’s rating of 84% according to recent reports. However, there have been recent rains passing through the Prairie provinces and it’s still too early to make the call on how this crop will turn out.

Barley markets remain strong this week. Old crop feed values are sitting anywhere from $6.50 – $7.00/bu FOB farm, while new crop is currently indicated at $5.00 – $5.50/bu FOB farm on a non-act of God contract. Reports of water falling from the sky and talks of more in the coming days, should offer a bit of relief for the 2021 crop ahead. Barley can be a bin buster crop, so save yourself some grief searching for storage come harvest and lock up earlier movement into the feed market. At risk of sounding like a broken record, we expect to see much of what is not grown under contract this year to have a delayed delivery window. As new crop feed contracts fill, expect this to play a role in pricing at harvest. That $6.50 to $7.00/bu at the bin now sure does look nice, but given the number of seeded acres, on top of what is already booked, buyers may not have to pay a premium and could very well work with what they have. Don’t miss the boat and leave yourself stranded on the island, rather, lock in a small percentage of expected production at historically high feed values and buy the boat!

No changes to report in the oat market since last week. Buyer bids remain tough to come by on old crop milling oats, with less than a handful of players in the game. Both milling and feed oat values hover in the low to mid $3/bu range picked up on the farm pending spec. Those looking to sell feed oats will require some decent weight as exceptionally light product is not of not much interest. If you’re looking for a market high point, early June typically tends to be the time and we are quickly withdrawing from that window. So, if you’re still sitting with product in the bin and are looking for more value, you may be forced to carry over until demand picks back up. New crop milling bids for the fall sit at $4.25/bu delivered into Southern MB., while late 2022 shipment is indicated at $4.50/bu delivered into Eastern SK. Give your merchant a call for firm pricing opportunities in your area.

Flax prices hold up and remain strong for another week. Old crop is still capturing $23.00/bu picked up, meaning it’s a good time to empty out the bins and make room for new crop. Production contract prices are up a touch this week, now quoted at $18-$18.50/bu FOB with an act of God, depending on area and movement timeframe. Analysts expect the 2021 yield on flax to be close to the 5-year average and based on those numbers, new crop supply with be similar to last year’s production. However, as we know, there is a smaller carry-over which is why we are seeing flax hold its value. The biggest unknown will be how much production the Black Sea region can supply and if it is enough to ease some of the perceived high values.

With precipitation in the forecast and the recent heat doing its work on the crops, chickpea markets remain relatively unchanged. Demand chatter is unaffected and reduced acres still leave a bullish feel despite the stock of supply in the bin. It’s no secret that North America is one of the only exporters with an oversupply available. If monsoons don’t produce in India, restrictions continue to lift and demand increases, it will be North America that buyers look to for supply. Another game changer to keep an eye on is the possibility of too much moisture and the potential threat of disease. Chickpea markets see some demand for July-Aug. shipping at $0.37/lb FOB farm and new crop contracts can still be signed at $0.34-$0.35/lb FOB farm with an AOG. Sample and feed markets range from $0.18-$0.22/lb and buyers are always looking for this lower quality product.

The milling wheat market has softened up a bit this week. Bids for #1, 13.5% protein now sit around $8.65 to $8.70/bu delivered to plant for July/Aug. movement. There remains a small discount for 12.5% protein milling wheat, but feed values are likely to surpass those bids in many cases, so we suggest growers look to those markets to capture higher returns. The durum market has seen some life this week in Southeast Sask., trading between $9.00 to $9.50/bu FOB farm for late Summer and/or early Fall. Values taper off as you move North and West, with most bids closer to $8.50/bu FOB outside of the extreme Southeast. As touched on earlier, feed wheat markets remain very attractive and can even be a great option for those with milling quality. Growers in ideal freight areas can see bids as high as $8.50/bu FOB farm for July shipment, while those outside the “wheelhouse” likely won’t see values under $7.75/bu FOB farm. The closer you are to feedlot alley, the better the price usually is, but there are exceptions. Call today for a firm bid in your yard.

Large green lentil markets have lost some steam this morning with most buyers pulling values back a cent or two. Although not all, one buyer has even gone so far as to step out of the purchasing game until values settle out. Could this be a sign of more to come? We’ve seen some drastic swings in bids, with some buyers as high as $0.39/lb delivered last Friday, dropping to $0.35/lb Monday morning and now no bid today. That said, there are still a few players left in the game at $0.36-$0.37/lb FOB farm and now may be the time to sign up what’s left in the bin. As of now, we are unsure what is causing the price drop but it’s most likely a combination of some timely rains, shipping concerns out of Vancouver and the thought of new crop getting closer to hitting the bin. As mentioned last week, speculation is going to play a major part in determining values for the next few weeks, so be prepared for a bumpy ride. Current crop red lentils are in a similar situation as firm birds become tougher to track down, with the target system seeming to work best to get product sold. Spot reds trade on firm target in the $0.33-$0.34/lb range. New crop red lentil contracts are still available at $0.32/lb FOB farm with an act of God, while DDC’s (NO act of God) carry a premium, possibly up to $0.35/lb delivered.

Canola futures have been a mixed bag this past week, with July futures falling significantly and November futures taking a bump up. Today has been a negative day in the markets so far, with $22/MT and $16/MT losses for July and November, respectively. At time of writing, July futures trade at $844/MT compared to last week at the same time when they were $899/MT. November futures currently sit at $757/MT compared to $745/MT last week.  Some of the weakness has come from moisture falling across areas of the Prairies that needed it.  Add in the reluctance in a few other key markets and you can see plenty of reasons for the drop. Strong local basis levels continue to be posted and we’re seeing great new crop pricing opportunities that are definitely worth a good look.

Canaryseed remains flat for another week as buyers continuing to look for both old and new crop, unwilling to reach beyond their posted bids. As parts of the Prairies catch some (un)expected rain, with more forecasted this week, we are not sure how long these high prices will stick around, especially as other markets show weakness. Now may be a good time to review the following bids and make some sales. New crop continues to trade at $0.33/lb FOB farm with an act of God on the first 10bu/acre. Old crop trades at $0.35/lb FOB farm in certain areas for Summertime movement. These bids are indicated for the best freight areas, but growers who are outside of those areas can still capture strong bids at a slight discount.

Mustard prices seem to have leveled off this week with spot and new crop both trading steadily at strong values. We have seen a mix of trades taking place; from large lots to small bin clean outs and some last-minute new crop bookings as much needed rain hits. Yellow mustard continues at $0.50/lb FOB farm for both old and new crop with an act of God. Oriental bids have been strong at $0.35/lb on Forge and Vulcan varieties for both old and new crop, with Cutlass about 2 cents behind. New crop and old crop brown bids are showing $0.41/lb to possibly $0.42/lb in the yard on firm targets. If you are looking for a home on new crop or any sized bin clean out, give us a call. Buyers seem to be willing to move small loads to help you with space issues on farm.

Forecasted rain and profit-taking ahead of tomorrow’s USDA report have pushed soybean futures down. Crop condition scores and weather forecasts will continue to bounce the market around as analysts try to forecast its ultimate impact on grain stocks. Buyer interest remains somewhat subdued due to decent coverage; however, buyers will look at any reasonable offer. Faba market remains well supported, with old crop feed values trading at $8.50-$9.00/bu picked up.  The Australian faba bean crop is anticipated to be historically large and will weigh on new crop export opportunities. Dry beans are experiencing solid demand South of the border, with exports being more restrained in Canada. This has buoyed US old crop values and to an extent Canadian values as well. New crop appears to have solid pricing prospects largely due to a reduction in seeded acres.

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.


Rayglen Market Comments – June 2, 2021

Feed barley bids show signs of life this week. Old crop values now range between $6.50 – $7.00/bu at the bin for June/July shipment, with a chance product trades a touch higher on firm offer. New crop is much of the same story with average bids around $5.00/bu FOB farm, area dependant. That said, show buyers what you’re looking for by posting a firm offer if your sell point is slightly higher than current bids. With such a strong push to purchase barley in months past, we suspect carryover of old crop will be minimal which should be supportive for values. Uncontracted new crop barley coming off this Fall may experience a delayed shipping window given the amount of new crop locked in at profitable levels. Don’t miss out, get some new crop on the books, create bin space and cashflow in the Fall.

Canaryseed holds strong for another week with no signs of vulnerability. However, buyers are not reaching any higher than current posted bids, which indicates markets have found a comfortable level; for now, anyways. As we have been saying for some time, if you are interested in signing up new crop canary, sooner rather than later is best. As we inch closer to harvest, we may see the act of God clause drop out of contracts and/or buyers may decide to sit on the sidelines and wait for their contracted product to start coming in. Getting your 10bu/acre on the books at historically strong values while taking some risk of the table with the AOG clause is a market savvy move. New crop prices are still bid around $0.33/lb FOB farm in many areas. Old crop is holding at $0.35/lb FOB farm in most locations with a couple of buyers interested in purchasing. If you are looking for prompt movement, you may want to post an offer at a slightly lower value.

Slower than expected soybean planting rates and dry conditions in the US has sent soybean prices higher this morning. Continued strength in the soyoil market also lent strength to the soy complex. Emergence rates for US soybeans remain ahead of historical values for this time of year, though last week’s frost damage could bring this year’s rating closer to average in the coming weeks. Local soybean bids are reflecting buyer coverage and have slid to now hover around $15.00/bu picked up depending on location. Buyers are encouraging any reasonable offer to be brought forward rather than a posting a standing bid. The faba market remains well supported, with old crop feed values trading at $8.50/bu picked up. Dry beans are experiencing solid demand South of the border, with exports being more subdued in Canada. This has buoyed US old crop values and, to an extent, Canadian values as well. New crop appears to have solid pricing prospects largely due to a reduction in seeded acres.

Chickpea markets chew on statistics this week and how they will affect the value in the upcoming marketing year. Given the predicted reduction in acres and using an estimate possible yield, North America could see a 17% reduction in chickpea production from last year. Most of that reduction would be realized in Canadian acres vs US as the US stats show little to no decline in chickpea acres over last year. Turkey is also reporting a decline over last year by about 14%. Locals believe this is understated as dry conditions have impacted production yields and it is expected this stat will change. Current crop bids are steady from last week and we believe opportunity exists for reasonable targets to lead to a trade. New crop remains the same as last week with bids around $0.35/lb FOB farm with an AOG. There is less wiggle room for upward movement on new crop for the time being. Best advice is to know what is in your bin. Check your bin tops for downgrading factors, get a true sample and be ready for marketing opportunities.

The pea market is showing some strength in value and demand this week. Yellow values have perked back up while green pea pricing remains stable, but we are seeing more demand generally. Exports have been slow, as per reports, but this is normal for late in the season. Current pricing on yellow peas is posted at $9.50-$10.00/bu FOB farm now, while new crop is trading up to $9.00/bu FOB with an act of God. Green pea pricing hasn’t changed too much, but increased demand is being seen, which could mean stronger pricing in the near term. Currently, bids are still indicated at $9.00/bu FOB, with grower targets hitting the system at $9.50-$10.00/bu FOB farm. New crop greens are still bid at $9.00/bu FOB with an act of God. Lastly, maple peas are indicated at $9.50/bu FOB for both old and new crop, with the chance for a slight premium on Acer variety.

As seeding begins to wrap up, we see the majority of wheat acres already in the ground. Extreme heat conditions will be felt through much of the province this week, but forecasts of rain to follow in some areas should help ease the heat stress. This week the milling wheat markets have shown a bump up in price with #1, 13.5% protein trading around $9.50 to $9.60/bu delivered to plant for July/Aug. movement. There are small discounts for 12.5% protein milling wheat, so please call if you fall within those specs. The durum market has been quietly trading around $9.00/FOB in the Southeastern part of Saskatchewan with values softening as you move North and West. Feed wheat markets took a step towards levels comparable with a few weeks ago. Bids are once again coming in at $8.00-$8.50/bu FOB farm in many locations with a slight variance under $8/bu in the “worst” freight areas. If you’re looking for the most current and up to date prices in your area, please contact your Rayglen merchant.

Mustard prices see continued strength on both new and old crop fronts. Current bids are showing new and old crop yellow mustard at $0.50/lb FOB farm. Oriental bids have firmed up to $0.35/lb on all varieties of late and for those that have been on the sidelines waiting for cutlass type to catch up to forge, the time seems to be now. New crop and old crop brown bids are showing $0.41/lb to possibly $0.42/lb in the yard on firm targets. As always new crop contracts on mustard are for approximately 10 bushels per acre and include an act of God. If you are looking for a home on a partial load that you have been sitting on for a while, now is likely the time as freight discounts remain fairly nominal based on the current values and buyers will happily look to pick up a partial load.

Old crop milling oat bids are hit and miss as many buyers are close to or are completely covered until new crop. Hence, price points are soft with #2 milling bids sitting around that $3.75/bu picked up on farm, depending on farm location. Fast forward a couple months to new crop and pricing indications in central Sask. sit around $3.75/bu for the last quarter of 2021, $4/bu for J/F/M and $4.30 for Apr-Aug. Please connect with your merchant for firm pricing at your farm. On the feed side, buyers are looking for product, but knowing your weight is key. A good heavy feed oat looks to price in around that $3.50/bu range.

Over the past week we have seen canola futures advance higher. This comes after a few weeks of consistent losses, dropping values well below their yearly highs. July futures currently sit at $899/MT, up from $873/MT last week. November futures, the month most physical canola buyers are using for pricing, are sitting at $745/MT. At this time last week, we were seeing $694/MT, so quite a large jump over the past 7 days. These gains come despite a drop in canola oil crush margins, which are still very high compared to historical values. Other factors contributing to the gains across the board are strength in soybeans and forecasted intense heat across the Prairies later this week.

Flax prices are sideways again this week with $23.00/bu FOB farm still attainable on old crop. New crop bids remain stable as well, but vary depending on movement, with upwards of $17.00/bu picked up including an act of God still achievable. Recent rains have provided some moisture relief, but with unseasonal heat this week, it could be a concern for those in drier areas. Old crop demand is quieter as buyers wait for new crop. New crop prices are likely to remain firm as there will be a slim carry-over of Canadian flax. Some analysts report the Chinese flax crop for 2020/21 has dropped by 30%. If Chinese production increases for this growing season, we could see less demand for 2021/22. This along with the prospect of a larger Black Sea crop means there could be some volatility in prices.  Having 10bu/acre on the books at $17.00/bu FOB, or higher, takes some risk off the table.

The lentil markets are messy right now to say the least. Prices seem to be all over the place with buyers seeming more interested in where the competition is priced than actually buying lentils. The market is filled with lots of speculation at the moment ranging from ending stocks in all the major players cupboards, questions surrounding the India tariff, crop conditions in Canada & Australia and destination sales. This is causing the markets to be very unsettled. For example, new crop reds with an AOG range from $0.30/lb FOB farm to as high as $0.33/lb delivered plant. Large green lentils tell the same story with a 3-cent range in old crop bids and a 2-cent range in new crop bids between different companies. Markets will likely stay this way for the next few weeks as we wait on the major players to really come to the table instead of buying hand to mouth to fill their needs.

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.


Rayglen Market Comments – May 25, 2021

The spread between old and new crop pea values is slowly disappearing as export business slows and farmers opt to not chase the market. Old crop yellow peas are hard to come by with the majority of bins cleaned out, however, there still seems to be a decent supply of green and maple peas in the bin. Current bids on yellows are indicated at $9.00/bu FOB, while green pea bids are harder to find, but indicated at $9.00-$9.50/bu FOB. Maple pea bids are at $9.50/bu FOB ($10.00/bu delivered) in most cases. New crop is almost on par with old crop pricing with yellows at $8.50/bu FOB, greens at $9.00/bu FOB and maple peas at $9.50/bu. Right now, it is not looking like India will reduce the tariffs on the yellow pea side, as per reports. India’s pricing on peas has faded, so if pea pricing remains low the incentive to reduce the tariff also decreases.

Widespread rains across the prairies over the past week offer some relief for 2021 crops. Prices remain solid for flax with $23.00/bu FOB available for the product still in the bins.  Analysts believe we have seen the highs on flax for the year so take advantage of these last few buyers who have their bids elevated. New crop pricing also is steady with pricing anywhere from $16.50-$18.00/bu picked up with an act of God depending on movement timeframe and location.  Flax supplies going into the 2021/22 crop year are only anticipated to see a small increase from last year, so we can expect new crop prices to carry-on sideways. What is changing are the movement periods.  If you are looking to move some flax out of the bins shortly after harvest, then locking the movement in is just as beneficial as the price.

The Soybean market is under pressure due to improving U.S. weather conditions and above-average planting paces. Market losses were limited by a dock worker strike in Argentina during peak export season. Local soybean bids are reflecting buyer coverage and have slid to now hover around $15.00/bu picked up depending on location. Buyers are encouraging any reasonable offer to be brought forward rather than a posting a standing bid. Generally speaking, buyer attention has turned to new crop as recent rains increase the likelihood of an average crop. However, buyer inquiries for higher quality fabas have slowed, with $9.00/bu FOB farm being a reasonable target for #2 quality. A reduction in new crop dry bean acres has prompted a bit of an uptick on old crop values with some buyers.

The inevitable has happened to the barley market as rain has hit throughout most of the Prairies over the past few days. Prices for old and new crop have begun to slip, but we are still seeing some strong values. Old crop bids range between $5.90 – $6.30/bu FOB farm, while new crop sits anywhere from $4.70 – $5.10/bu FOB farm, freight dependant. We suspect old crop values to continue to slide in the near term, given the recent moisture and diminishing time until harvest. For the most part, the assumption is most buyers will work with what they have on the books for now and take more of a “hand to mouth” approach until new crop hits the bins. Now is a great time to lock in any remaining old crop and some new crop to hedge against the downside. An increase in seeded barley acres adds fuel to buyers eventually converging spot and production values and it is unlikely production values will increase. Getting some on the books now not only guarantees you a great price, but also secures quicker movement, bin space and cashflow.

Seeding in the Prairies should be wrapped up soon and timely rains have definitely started 2021 crops in the right direction. However, wheat markets in general have seen a dip since last week based on improved crop conditions. Milling wheat with 13.5% protein now trades around $7.90 to $8.00/bu delivered to plant for June/July movement. Near term bids are the strongest with further out delivery values declining. Small discounts are still seen for 12.5% wheat, with bids around $7.75 to 7.85/bu delivered for June/July. The durum market has slipped as well, now trading around $9.00/FOB in the Southeast part of Saskatchewan. The feed wheat market has softened to $7.00 to $7.50/bu FOB in much of the province. The closer you are to feedlot alley the better the prices usually are based on freight advantages.

Canaryseed markets remain unchanged despite most other commodities taking a step back this week. After a general rain event, growers who are still holding old crop or planting new crop may want to get some product on books as we aren’t sure how long these prices will hold on. We are a long way from getting the crop in the bin, but right now crop conditions are looking very favourable in most areas. New crop bids are still holding on at 33.5 cents/lb delivered to plant, or 32.5-33 cents/lb FOB farm pending freight. These contracts still include an act of God on the first 10bu/acre. If you are on the fence about new crop, sooner than later would be suggested. Old crop is still sitting at 35 cents/lb FOB farm with Summertime movement. You may be able to shorten the delivery window on a firm offer, so please let us know what you’re looking for.

Oats…now here’s a commodity that’s content to idle in place with no new changes to report pricing wise. There is some buyer interest in old crop milling oats around that $3.70/bu range picked up on the farm depending on farm location. Flipping forward to new crop, look for mid to higher range $3’s for 2-2021 movement and $4 to maybe a smidge more for delivery in the new year. On the feed side, we have buyers looking for 38lbs plus product for the feeders. We suggest giving your merchant a call with specs and location to get some pricing and movement specifics for your area. Last but not least, most areas should be off to a good start as this past weekend’s welcomed rain has hit many zones. Now, let’s bring on the warm weather and sprinkle in a few more showers to finish this crop strong!

Canola futures have continued downwards over the past week, seeing losses in all futures months. The speculative July futures sit at $873/MT, dropping far from the $922/MT we saw a week ago. The November futures, which are what most buyers are now using for physical purchasing, have fallen to $694/MT. This is compared to last week at $713/MT. The substantial rains across the prairies have no doubt had an impact on the canola market but spec fund and grower selling has also put some pressure on prices. Some late frost issues may result in reseeding in some areas of the Prairies and is something to keep an eye on moving forward.

Chickpea markets remain steady this week. The recent rain has dropped values for cereals and lentils, but the chickpea market is not having the same response. All eyes are still on India as to whether or not tariffs will be reduced and exactly how that will affect the market. Old crop bids are unchanged from last week, hovering around $0.35/lb FOB farm for a #2 large kabuli and new crop about the same. There is still demand for high damage or green chickpeas with bids ranging from $0.22-0.25/lb FOB farm. General market feel is that there is more room for an uptick in the market. When? Well, as a chickpea grower you maintain posture and wait. There is no defined timeline, but the market is more affirming that it is in the cards than not.

As the lentil crops enjoyed the rain these past few days, we cannot say the same for the markets. Old and new crop lentils have seen a slight drop in value this week. Markets are seeing pressure from improved crop conditions, selling pressure and lack of overseas interest. The rain was widespread with varying amounts, but it was enough that the market is satisfied, for the moment, that there will be production, easing the urgency to purchase both old and new crop. Producers are making new crop sales rather consistently now, trying to catch the remaining high-end bids. Pricing this week is best described as a moving target. The latest red lentil trades are taking place at 33 cents/lb FOB farm, for both old and new crop.  Large green lentils have traded as high as 40 cents in the past week, but the majority of bids are coming in at 37-38 cents/lb and getting harder to find. New crop large greens are indicated at 36-37 cents with only a couple buyers at those levels. Lastly, small green lentils are trading at 34 cents for old and new crop. Let’s hope that these markets find some stability before values dip lower.

Mustard prices remain steady so far this week with no changes yet, but as we all know significant rains have occurred in all the mustard growing areas over the past long weekend. This seems to ensure at least a decent start to the mustard crop and is a big swing from getting reports of seeding into dust just last week. Even the US planted mustard area has had some good rain as reported by growers across the border. Mustard bids are seeing yellow as high as $0.50/lb for old crop and similar values for new crop with varying delivery windows. Oriental sits at $0.35/lb for Forge & Vulcan and $0.33/lb on Cutlass for product in the bin, while new crop Forge sits at $0.35/lb & Cutlass at $0.33/lb for Sept. to July movement. Brown is bid at $0.40-$0.41/lb on old crop with new crop as high as $0.43/lb for Sept. to July pickup. After the rain, these prices look very strong, so it may be a good idea to get some product locked up. Shorter pickup times are available on new crop bids with discounts for December and March deadlines.

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.


Rayglen Market Comments – May 19, 2021

Chickpea markets were a little erratic this week with a couple of buyers looking to submit offers on a US tender that closed last night. The general feel from the producer side of things is to hold and wait for the potential upside still on the horizon. Isolated rains have been helpful to many, but general moisture is not widespread. The overall consensus is that growers are not out of the woods yet regarding drought, and it will take more than a rain shower in May to reverse dry conditions. Old crop bids for #2 large Kabulis are $0.35-$0.36/lb, while the ask is $0.38-$0.39/lb FOB. New crop bids for #2 large Kabulis are $0.33-$0.34/lb with an AOG and Sept.-Dec. movement. No change has occurred with the petfood/sample market despite every buyer on the hunt for it. Depending on the day/quality/location bids range from $0.18-$0.22/lb. One thing that can be said is that the market is showing more sensitivity to chickpeas dated 2019 and older. Check your bins, confirm quality and if chickpeas are on the agenda for movement, offers are the best way to get the most out of the market right now.

While flax prices have decreased in Europe due to decent growing conditions and supply in the Black Sea region, there is still a small pool of buyers looking to buy old crop at $23/bu picked up.  New crop pricing is holding strong, ranging from $16.50-$18.00/bu picked up depending on movement, complete with an act of God. The new crop prices are expected to remain sideways as the carryover on old crop flax will be minimal. Going forward, global flax markets in the upcoming crop year will depend much more on the production out of the Black Sea region. Canadian flax carryover will be minimal, so markets will be looking to the Black Sea region to fill the gaps.  The biggest unknown is how much supply will be produced overseas.

Barley markets take a step back this week, but on the bright side we still have some blistering numbers out there for both new and old crop feed. As always, feed barley bids are area dependant and are now indicated at $6.25 – $6.75/bu FOB farm. Due to strong spot bids, carry over for 2021 should be next to nil, which seems to be helping hold up new crop values. New crop bids range anywhere from $5.00 – $5.50/bu at the bin on a straight DDC (no act of God). These are great, if not historic feed values and we urge growers not to be left wishing you would have taken the time to shovel out the corners of those flat bottom bins or signed up some production. Weather reports are indicating rain and snow for most areas of Saskatchewan over the next few days which would be welcome, should it ring true. Barley is typically a decent crop for retaining the moisture and pushing itself through. If that’s the case and values hold up, you can very easily expect it to be one of the top 3 return on investments to the farm.

Not to sound like a broken record, but not much has changed on the oat front this past week. Prices remain flat at best and when you can find a bid on milling oats, look to see pricing around $3.70/bu picked up, pending farm location. Looking forward to new crop pricing, you’ll see bids in around the high $3’s – $4/bu range with 2022 new year pricing popping up just over $4/bu for those located in Eastern Sask. If you’re sitting with feed oats in the bin, don’t hesitate to reach out with details although there haven’t been many active bids, buyers will still try to work with them. Prices have been hovering around $3.40/bu picked up on the farm on heavy product in select locations.

The pea market remains quiet as seeding is well under way and even wrapping up in a few areas. Chinese & other demand has pulled back for the moment, seeming to be covered well enough for the first part of the 2021/2022 marketing year. Old crop and new crop pricing have had no change from last week. Yellow peas are at $9 – 9.50/bu FOB, with new crop prices posted at $8.50/bu – 9.00/bu FOB. Green peas had a few trades at $9.50/bu FOB with new crop still quiet at $9.00/bu. The maple pea market remains stagnant at $9.50/bu FOB for both old and new crop. If our yields do get reduced due to poor moisture conditions, we could expect prices to recover. However, this will not happen overnight.

Canaryseed is strong once again this week, but with rain in the forecast for some key growing areas, we may see things soften. New crop is trading at 0.33c/lb FOB farm in all areas while old crop still trickles in at $0.35/lb on farm in many locations. Production contracts contain an act of God on 10bu/acre, which is a great starting point for taking some risk of the table. A general rain event this week is likely to determine market direction next week, but that is assuming forecasts are correct. If you are on the fence about booking, now may be time to hedge your bets before the rain comes. Offers are always a great way to advertise your grain and get top dollar, so if you have a target in mind call to post one up.

‘Tis the season for crop condition scores, planting progress and weather forecasts to drive markets. Global production estimates are cautiously increasing and encouraging weather forecasts are being circulated. That said, the North American crop is a long way from the bin and markets will remain manic for a bit yet. As for today, markets are off and technical selloffs rule the day. Local soybean bids are reflecting buyer coverage and have slid to now hover around $15.00/bu picked up depending on location. Buyers are encouraging any reasonable offer to be brought forward rather than posting a standing bid. Buyer’s inquiries for higher quality fabas have slowed.  However, $9 .00/bu FOB farm is a reasonable target for #2 quality. Dry bean acres are forecast to decrease for 2021. Shrinking new crop acres has prompted a bit of an uptick on old crop values with some buyers.

After a big dip to end last week, July canola futures have rebounded to be about the same, sitting at $922/MT. Buyers have turned their eyes to the November futures for trading now, which have taken a bit of a blow this week. They currently sit at $713.20/MT, down from $754/MT at the same time last week. On farm bids have taken a significant hit the past couple weeks as we near the transition to new crop.  So, if you’re holding onto some canola still, now might be the time to pull the trigger. Forecasts for much needed rain across Western Canada played a roll in the recent weakness as well as strength in the Canadian dollar. Whether the forecasted rain will be enough to kickstart a much-needed canola crop is another question and one we will find out in due time.

Mustard prices are still looking great this week with lots of buyers showing interest in old and new crop. The yellow market has shown the most interest with old and new crop bids up to $0.50/lb at the yard for #1 quality yellow, which is a number that we have not seen with yellow in quite some time. Dryness is still the biggest issue but maybe some of those worries will be put aside with rain in the nearby forecast; time will tell. Prices on oriental and brown remain at similar levels to the strong values we have seen recently. Brown bids on old and new crop are being shown at $0.40 or a little better in recent weeks. Oriental prices are still variety dependent with buyers paying about a 2-cent premium for Forge type at around 35 to possibly 36 cents/lb picked up on farm.

Seeding in the Prairies seems to be moving right along this week as many growers report almost being wrapped up. Wheat prices have dipped a bit over the past week with bids for 13.5% protein #1 Milling now around $8.60/bu delivered to plant for May/June movement. Lower protein wheat (12.5%) of the same spec remains at a slight discount in the range of $8.40/bu delivered for May/June. The durum market continues to be strong over the last while and has been trading at $9.50/FOB primarily down in the Southeast part of Saskatchewan. Feed wheat takes a bit of a hit this week with red futures and moisture events across the prairies.  However, bids still remain attractive and are now quoted at $7.75 to $8.25/bu FOB in much of the province. The closer you are to feedlot alley, the better bids get, but don’t hesitate to reach out from anywhere as buyers are hungry to purchase.

Lentil prices continue to clip along this week with no signs of bearishness. There is lots of chatter through the grapevine that India is considering dropping tariffs as well as enforcing the provisions of the Essential Commodities Act. This act is to ensure that there is adequate availability of essential commodities to the population. Execution of this means everyone involved with the trade of food must release their inventories. It was confirmed on the weekend that India did reduce their tariffs on Tur (Pigeons Peas), but so far, this has not affected pricing of lentils. There is a chance it may help the large green market as they are used for a substitute to Tur. A quick recap on values: spot red lentils trade at $0.36/lb FOB with new crop as high as $0.34/lb FOB with act of God. Large greens continue to trade at $0.40/lb on farm in many locations with new crop bid as high as $0.39/lb FOB farm. We wait for further news from India as it could make for interesting times in the lentil world.

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.


Rayglen Market Comments – May 12, 2021

Lentil markets remain virtually on par this week, with values tending to creep up a little until demand is filled, then dropping back down. For now, the swing on all varieties does not seem to be more than a cent/lb up or down either way. Spot large green lentils have been trading around that $0.40/lb FOB farm mark for June/July movement, while new crop is being bid at $0.37/lb with a full act of God. Old crop reds continue to trade at $0.35/lb FOB farm, with new crop trading at $0.32/lb FOB farm with a full act Of God. After many areas finally getting some much-needed rain, we suspect that new crop bookings will start to pile up at these strong values. Take advantage of some new crop pricing and earlier movement to get some cash flow back into the farm. Old crop selling seems to be halted which can be attributed to one of two things: producers just wanting to get seed in the ground before making final decisions or growers are sitting on the last few bushels and waiting it out for a higher price. There is nothing written in stone out there that you need to sell everything, but with these values it’s hard to not to make incremental sales. Yes, the price may go higher and there doesn’t seem to be much downside, but as we have seen time and time again, values could drop off overnight. Trying to catch the market on the way down is tricky as it usually doesn’t drop slowly, but rather plummets.

Trying to put a number on canola these days is rather tricky and let’s be honest everyone and their dog knows what the canola market is doing. We are seeing all-time highs in canola right now, but the question remains whether the market continues the course or eventually finds a place and levels off or possibly drops. To put a firm number on canola is tough as values seem to change daily and/or hourly. It has backed off a little bit this week, but prices are still attractive. With rain received over the weekend and the general outlook of more to come, we suspect this has taken a little bit of heat off the buying side. The real question right now is: if you are sitting with canola in the bins what are you waiting for? Don’t be the guy saying you could have had a record price but waited too long! You don’t necessarily need to sell it all in one shot, but with the availability of $20.00/bu or better (yes you read that right $20.00/bu or more) the comment has to be made!

Seeding is progressing well, with reports stating that 23% of the pea acres have been planted as of early May. Lack of moisture has farmers staying in the fields; however, we are going to need some timely rains this year as to not adversely affect yield. Pricing has not changed much over the past weeks as China’s buying interest seems to be fading for the time being. Yellow peas have seen a couple $10.00/bu FOB trades (location specific) with $9.50/bu FOB available in more areas. New crop yellows remain at $8.50 – 9.00/bu FOB with an act of God. Green peas had a couple more trades over the week with $9.50/bu FOB hitting on firm target. New crop remains quiet at $9.00/bu FOB with an act of God. Maple peas have seen no change or action, with old crop at $9.75 – $10.00/bu FOB and new crop at $9.50/bu FOB.

Canaryseed markets remains strong this week and although some areas of the province were lucky enough to receive rain over the weekend, other parts weren’t as lucky. That said, it’s still early and tough to write a crop off mid May as things have more than enough time to turn around. Old crop has slowed down a bit, as buyers aren’t as aggressively buying, but are still looking for product around $0.35c/lb FOB farm for May- June movement. You can always post an offer for further out Summertime movement and see if that gets picked up. New crop is still very attractive at $0.33c/lb FOB farm with act of God. New crop contracts are on the first 10bu/acre, so you are taking some risk of the table but not booking your whole crop.

Chickpea markets maintain trading tone as we move through seeding season. Values have stayed the same from last week at $0.33/lb on old crop and $0.31/lb Sept.-Dec. with an AOG on new crop. Pakistan is still the main buyer of Canadian supply, but we have seen Italy pop up as an importer as well. As we slowly start to eat though stocks and assuming acres remain monotone, the expectation is for an upward shift in the coming months. Mexico’ values have been creeping up which could indicate reports of lower yields are factual for their production.  If rumored lower production in competing countries is true, it will support higher values for Canadian stock despite the large carry. General tone is bullish, but the buying side has not yet decided it is time to get aggressive. Consider targets when marketing as a lot of value can be left on the table in a bull market.

Not a lot of change in the wheat market from week to week. Prices remain attractive with 13.5% protein #1 Milling wheat still bid over $9.00/bu delivered to plant for May/June movement this week. Milling wheat that meets the same #1 spec but is only 12.5% protein carries a minimal discount with the same movement. The durum market is very strong as well and has been trading between $9.00 to $9.50/bu FOB over the past week or so for Summer movement in Southeast SK. Feed wheat continues to be a bull this week and has been trading around $8.00 to $8.50/bu FOB depending on location. The closer you get to the Southwest part of Sask, the better the price usually is. Wheat prices in general continue to be profitable and should continue to be for the foreseeable future.

Oats continue to trade sideways again this week as milling prices hold steady around that $3.70/bu range picked up on the farm. Bids are still a bit spotty to come by as most buyers are covered through Fall on old crop. New crop milling prices are also much of the same with mid $3’s for Fall movement and high $3’s -$4 plus for 2022 onwards. Active feed bids have been fairly quiet, but if you have something firm let us know as the odd trade has triggered around that $3.40/bu picked up on the farm. Overall, oat stock reports are down from last year according to StatsCan, as it’s been a strong marketing year with domestic use increasing over 5%, while exports shot up to just over 18%, sitting at 2.1 MMT. Let’s hope for another strong marketing year for oats as planting has started in almost all regions.

Bean exports are running ahead of average so far for the year although analysts are expecting carryover into the 2021/22 crop year. That said, some demand is still expected to come from Mexico which may chew through some of the supply. China increased their exports to 11,500 tonnes so far this year compared to 3,000 tonnes a year ago, which is also something to note. Seeded acreage in key growing areas across Canada and the US are expected to be down for this growing season and we suspect strong markets across most commodities is playing a roll. Black beans have seen the strongest gains as far as prices go, but pinto and black bean values have seen some strength in the last couple of weeks, mostly due to the stronger demand from Mexico. Faba bean prices remain fairly strong driven by moisture concerns in Western Canada and the US.

Flax prices remain linear for another week with a small pool of buyers still looking to buy at the highs of $23.00/bu picked up.  New crop pricing also remains strong with prices hovering around $17.00/bu delivered with an act of God. Flax prices in Europe have come down, likely due to decent growing conditions in the Black Sea region. The new crop prices are expected to remain sideways as the carryover on old crop flax will be minimal. As seeding is underway, weather will play a factor on expected yields, which may not build up that cushion of flax inventory going into the 2021/22 crop year.  The big factor will be if the Black Sea production will have enough supply to fill the gaps.

Sitting with some barley? You may want to double check those bins as feed continues to trade strong with pricing around $6.40 – $6.75/bu picked up on the farm for June/July movement. With historically high pricing and tight stocks we’re in for a bit of a wild ride. New crop values are sitting at $5.00 – $5.50/bu picked up on the farm in Sask. Like always, farm location plays a factor. So, look for stronger bids on both old and new crop in Alberta as you get closer to feedlot ally. Curious about malt prices? Well, maltsters seem content to lurk along the sidelines and play by themselves as they don’t want any part of these prices.

Mustard has traded sideways all week with bids virtually unchanged. A lot of talk about dryness in mustard growing areas continues, but we did see a half to one inch of moisture on the weekend in the extreme Southwest corner of Sask. and Southeast Alberta. This should alleviate short term concerns in those areas and offer a decent start now. The old argument remains on how many acres were planted this year and that picture will become clearer very soon. Mustard bids are seeing yellow at $0.45/lb for new crop with a new bid appearing on spot product at $0.46/lb for July to August pickup. Oriental old crop sits at $0.35/lb for Forge and Vulcan and $0.32 for Cutlass, while new crop Forge sits at $0.35 and Cutlass at $0.33/lb for Sept to July movement. We haven’t seen Oriental bids at these levels in a long time, so it may be a good idea to get some product locked up. Brown is bid at $0.40-$0.41/lb on both old and new crop. Shorter pickup times are available with discounts for December and March time windows.

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.


Rayglen Market Comments – May 5, 2021

Once again pea markets go another week without much change or excitement. Yellow pea prices are posted at $10.00/bu delivered, but supplies are getting hard to come by. Green peas have seen a couple of firm targets hit at $9.50/bu FOB, but trades have been limited with buyer and farmer price expectations not quite matching up. New crop values remain at $8.50 – $9.00/bu FOB on yellows and $9.00/bu FOB for green peas. As seeding gets underway, pea acres are forecasted to be down from last year, with most of the decline coming from green peas. Moisture conditions also remain a factor as almost every area would welcome some rain, so we will have to see what the next few weeks will bring. For maple peas, pricing also remains the same as last week, $10.00/bu FOB on both old and new crop (in a few areas) has traded.

Barley exports continue to rise and outpace previous years as pricing remains extremely aggressive. Feed barley has been trading at $6.30 – $6.60/bu FOB for June – July movement. If you still have some feed left in the bin, now might be a good time to get your barley priced out at these all-time highs. New crop feed barley is also posted at $5.00 – $5.50/bu FOB (deferred delivery contract) with the latter being seen in Southwest Sask. As you head into Alberta, prices on both old and new crop will get stronger. Malt barley remains quiet on both old and new, with almost all barley trades being priced into the feed market.

Chickpea markets are much the same this week, with old and new crop values unchanged around $0.33/lb FOB farm. Old crop delivery windows are posted as June-July movement, while new crop is quoted as September-December with a full AOG. Rumblings of seeded acres increasing since the last estimate seems to have no effect on value so far, but whether those reports ring true is yet to be seen. We must factor in the carry-over from years past, which is sure to play a role in values. That said, a generally firmer tone is felt and if you do not like the current price and are holding out for $0.35/lb or higher, don’t be scared to throw out a target. Throughout the past couple of days, the Prairies have seen some scattered showers and reports are showing that we might be in for some more precipitation over the next couple of days. Cross your fingers and toes, that we receive this much-needed moisture and start 2021 crops off the right direction.

Canaryseed is steady for another week as buyers look for both old and new crop with aggressive bids. This week, old crop canary is trading at 35 cents/lb FOB farm for May-June movement, while new crop bids are posted at 33.5 cents /lb delivered into plant. Pending freight costs, most FOB farm bids on new crop are penciling out between 32.5-33 cents/lb. New crop contracts still have an act of God, but as seed hits the ground and we get closer to product in the bins, expect to see the act of God clause taken out. If you are thinking about locking some production up, sooner than later might be the best option.

For 13.5% protein #1 Milling wheat, bids are coming in over $9.00/bu delivered to plant for May movement this week. For product that meets that spec but is only 12.5% protein, growers can expect to see a slight discount at around $8.90/bu with the same movement. There is still time to lock in new crop milling wheat around $8.50/bu delivered on 13.5% protein product for Nov./Dec. shipping. Durum bids are very strong as well and are trading between $8.50 to $9.00/bu FOB for Summer movement down in the Southeast part of Sask. Bids fluctuate from those values the further North and West you move. Feed wheat remains strongly priced as well and has been trading between $7.50 to $8.50/bu FOB farm depending on location. Prices in the wheat market continue to be very attractive this week.

Lentils remain stable this week with not much change in pricing at the farmgate, despite values having dropped in India. The recent drop in India can be attributed to the recent spike in Covid cases.  India is still tight with lentil stocks but as cases rise, fears of a major lock down support the thought that the country will be using less food in the short term. Long term speculation is that they we will have to come back to table and buy lentils. Back here in Canada, seeding is underway and as farmers hit the field we expect selling to slow as focus shifts to getting the crop into the ground. Market analysists are suggesting that the Fall supply could be tight, based on acres and an average yield. The big question mark is how many more lentils will ship yet before the end of the year and what is really in the bin for stocks. Moisture concerns also seem to be in the back of everyone’s mind; if we see rain in the next couple of weeks expect farmers to take advantage of the new crop pricing, with new crop markets most likely softening as contracts start to book.

Seeded acres of flax are only pegged to increase by 6% over last year, which will make it difficult for flax supplies to increase significantly for the 2021/22 crop year. Global flax markets will depend much more on production out of the Black Sea region. Prices on flax remain strong with a small pool of buyers purchasing at $23.00/bu FOB into Summer months.  New crop also remains between $16.25-$16.75/bu FOB with an act of God depending on movement timeframe. These record prices weren’t caused by low supply but rather strong export demand. Flax prices in Europe have declined by about $75US per tonne as they get more supply coming in from the Black Sea region. StatsCan will release stock estimates later this week and analysts expect to see numbers lower than they have been in the last 20 years.

The canola market continues to reach new heights this week. At the time of writing, May canola futures are trading at $933/MT which is up from $900/MT last week.  July futures trade at $905/MT which is up significantly from last week at $834/MT. November futures have also been gaining strength this week, trading at $727/MT, which is up from last week at $689/MT. If you have not sold all or any of your canola, you’ve made the right call, but as the old saying goes, “prices take the stairs up, but the elevator down”, so now may be time to hedge what’s in the bin. It is still generally dry across the Prairies and farmers will start seeding canola very soon if they have not already started. We will need to see strong yields this year to keep up with the demand that is currently seen, but there is no saying demand will continue at the current pace.

There is not much noise in the oat market lately. Things seem to have tapered off with only the odd old crop bid popping up here and there for either milling or feed. As such an offer may be a great way to go. Expect to see milling prices in the upper $3’s with feed around the low end $3/bu picked up on the farm if you can find a firm bid. Farm location continues to play a major factor on price. On new crop milling oats, bids are more abundant, sitting around $3.50/bu for fall with delivery in new year onward ranging from $3.75 – $4.25/bu. The closer you are to Sask/Manitoba boarder the better.

Faba bean prices have not seen a whole lot of change in recent weeks as bids for #2 quality are few and far between but remain around the $9/bu on farm range. Buyer interest in feed fabas still seems to be around $8.50/bu at the yard, which is a solid price to clean out the bins. Soybean planting in the US continues at a faster than normal pace this year and a shrinking supply of old crop has been bullish news for the futures market. Higher Loonie values will keep a bit of a cap on prices as an 81c Loonie is a pretty big difference from 71c a year ago. Current bids on soybeans are still around $15/bu but tougher to track down as many buyers are fairly covered for the time being. Firm targets are encouraged as business is very hand to mouth and they don’t want to own what they can’t sell.

Prices remains strong and steady in the mustard market as talk continues to circle around the acres being planted this year. Is the StatsCan estimate a little too high? Competition for acres this year is certainly an issue with commodity prices being so strong, so we will see where we end up in short order. Looking at recent weather conditions, it seems that the mustard growing areas remain dry with everybody needing rain.  This is adding a little fuel to the fire on both old and new crop for picked up with an Act of God on 10 bushels. Today’s bids are seeing yellow at $0.45/lb for old and new crop.  Oriental old crop sits at $0.35/lb for Forge and Vulcan and $0.32 for Cutlass, while new crop Forge sits at a strong $0.35 and Cutlass at $0.33/lb for Sept. to July movement. Brown is bid at $0.40-$0.41/lb on both old and new crop. Shorter pickup times are available with slight discounts.

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.


Rayglen Market Comments – April 28, 2021

Seeded acres have been reported and StatsCan has field peas down more than originally expected, dropping to 3.8M from 4.2M. It is expected that this drop will encompass more green peas, however yellows and specialty peas will be down too. Therefore, supplies may be tight for this next marketing year, unless the weather smartens up and yields are exceptional. Having a positive price reaction looks favorable but this may not come into play until later in the year once China’s demand is known. Hopefully, we can see green peas move back into a premium, with acres being decreased. Current pricing has not seen any change from last week. Yellow peas are at $10.00/bu delivered (9.50/bu FOB), with new crop values at $8.50/bu FOB; $9.00 may be available in limited areas. Old crop green peas are priced at $9.50/bu FOB and new crop is at $9.00/bu FOB. Maple peas have yet to see much change with old crop at $9.50 – 10.00/bu and new crop at $9.50/bu FOB.

Canaryseed is starting the week off strong. We have buyers that have purchased old crop product at  $0.35/lb FOB farm  for Summertime movement on firm offer. New crop is also strong with prices moving to $0.33/lb delivered plant at the end of last week and still sticking around. Even with some areas looking for moisture at this point in time, getting 10bu/acre on the books doesn’t seem like a terrible play given the historically high value and contracts including an Act of God. We have booked quite a few acres so far so talk with your merchant if you are interested in getting some acres locked up. Seed sales are very close to coming to an end, but if you need some last-minute supply, give us a call and we can help you out.

Barley markets remain steady without much new and exciting to talk about. The price for old and new crop has come up slightly this week with spot bids reaching $6.50/bu FOB farm in Central SK and production hitting $5.75/bu in Eastern AB. The story remains the same, a “hot” feed market and a lackluster malt market. Covid has had a big impact on malt barley and with sports venues, concerts, fairs etc. being shut down, demand for malt just isn’t what we normally see. Luckily, record high feed markets are there to alleviate the lack of a malt market. As is with anything, this feed market could very well drop off overnight and with current demand driven by China, it’s highly suggested that you don’t miss the “boat” on this one. Our general suggestion: sell what’s in the bin and make room for new crop. At the end of the day, production is not too far away and at a $1/bu discount, we’d hate to see those bids converge while there’s still product in the bin. Hedging the downside on old crop is likely a good play. As for new crop, locking in 25% of your expected bushels at a higher-than-average bid is a great starting point. This puts some relief on your shoulders knowing you you’ve secured movement, bin space and cashflow, leaving you with another 75% to play the open market with when the time comes.

Flax prices remain sideways for another week on old and new crop. While there are still opportunities for old crop flax, it seems the market has topped off and the pool of buyers willing to hit the highs of the year is dwindling. New crop prices remain strong with bids ranging from $16-$16.75/bu FOB with an act of God, depending on movement timeframe. According to customs data from China, there was 34,000 tonnes of flax imported in March. Twenty thousand tonnes originated from Canada, while the remainder was split between Kazakhstan and Russia. Exports from the Black Sea region were lower in the earlier months of 2021, likely caused by some hurdles at the Chinese border. With seeding starting up in a few areas of the province, make sure you get our alerts for any changes in the market.

Despite being mostly in the red the last two days, canola futures are still advancing, reaching new highs again this week. At time of writing, May futures are sitting right on $900/MT which is up substantially from $871/MT last week. Physical buyers have not been trading off May futures for quite some time now as speculators drive the price up. July is the only old crop futures worth looking at if you are still holding some canola in the bins. Currently sitting at $834/MT, July futures have risen from $814/MT last week. November futures have also seen an increase to $689/MT from last week at $680/MT. Wild volatility this week has some people on edge, but stocks on farm are still very tight and conditions are dry across much of the Prairies as we get into seeding. If demand stays this strong into the next crop year, we will need to see some strong yields this year to keep up.

The milling wheat market has seen some strength this week in Central Saskatchewan. Bids, basis #1 quality with 13.5% protein, have been coming in around $9.00/bu delivered plant for May movement. For #1 product with 12.5 % protein a slight discount of 20 cents is seen, putting bids at $8.80/bu delivered for the same time frame. There are some opportunities to lock in new crop milling wheat around $8.50/bu delivered on 13.5% protein product for Nov./Dec. shipment. Durum bids are holding strong with $8.50 to $9.00/bu FOB trading for Summer movement down in the Southeast part of the Sask. The feed wheat market remains attractive, actively trading between $7.50 to $8.00/bu FOB farm depending on location. Growers in Alberta and Western Saskatchewan are seeing the highest values, but all areas are receiving attractive values.

Confusion is a good way to describe chickpea markets today. StatsCan is showing some very defining numbers on expected acres down 28% from last year (298k acres vs. 212k acres). The confusion comes from outlying opinions that express the opposite and go as far as predicting a slight increase in chickpea acres from last year. There is no commentary to support that opinion, but it is a bold statement worth noting. A typo perhaps? Seeding is just starting to roll and so far, the moisture reports are not all bad. Conditions may be acceptable for germination, but a spring rain will be necessary to keep progress on track. Old crop values for #2 Kabuli’s are $0.33/lb FOB farm for June/July movement and new crop bids are the same at $0.33/lb Sept.-Dec. with an AOG. Sample chickpeas valued anywhere from $0.18-0.23/lb FOB farm depending on downgrading factor. On a side note, marketing discussions often end with a chickpea value that a producer would be happy to sell at, but the intention is to wait until the market gets there. Our recommendation is to set that target. Tell the market what you want and go after it. Roughly 8/10 times we have had success in this style of transaction, and it has become common place in today’s agricultural environment.

The mustard market remains linear this week as prices remain strong.  StatsCan numbers indicate that the mustard acres will see a pretty significant increase and that tamped things down a little. StatsCan is suggesting acres will increase to 358k from 257k last year but many in the trade feel that number seems too high based on reports from growers, so there may be a revision in subsequent updates. Current bids still show $0.40/lb for old and new crop on brown mustard, $0.45/lb on yellow for old and new crop, whilst $0.35/lb is attainable on specific varieties of oriental mustard. There is still lots of talk of dry conditions which is dominating farmers plans on making too many sales on old or new crop. If a good heavy rain does come in the near future, does that open the proverbial floodgates on sales? Time will tell, but it’s a problem we would all like to see, we think.

Old crop milling oats continue to trade soft as the majority of buyers report having coverage with product on hand at this time. With bids few and far between, pricing remains elusive as well on feed, but look for around $3/bu picked up on the farm for dry, heavy product. Just the other day, the StatsCan seeded acreage report came out indicating a decrease in seeded acres which was expected. We haven’t seen any correlation with new crop pricing as it’s not expected to be a big factor. As many have said, “we haven’t lost a crop in April yet.”

Lentils continue to gain strength as we head into seeding. This uptick in the markets could be the start of another wild ride for lentils. There has been lots of talk about India reducing tariffs so they can cover a shortfall in lentil supplies, although this is yet to be seen. Moisture concerns in Canada and the US is also helping push lentil prices up. StatsCan released their latest seeded acreage report suggesting that we will see 4,218,000 this year, which is relatively similar to last year’s acreage, meaning we will likely not see an increase in ending stocks. At current price levels everything points to profitability on the farm, yet farmers are resistant to lock in new or old crop due to the fact prices keep climbing upwards. So, to recap what is driving these markets? First and foremost are moisture concerns, second is buyers trying to secure acres, and third is the effects Covid-19 is having on the world food supply.  The first two factors are having the greatest effect on pricing. If we see rain in the next couple weeks, prices will likely fall back, and we will see acres start to book and fill buyer’s needs. If this is the case, expect buyers to walk away until Fall. These markets seem very fragile right now making marketing extremely tough on everyone.  Remember high prices cure high prices.

It is expected that U.S. planting pace will increase next week. This prompted some technical selling and thus a drop in soybean futures. Old crop supplies remain snug with rumors of minor U.S. imports. Buying appetite has waned a bit based on what is perceived to be high prices. Local soybean bids are reflecting buyer coverage and have slid to now hover around $15.50/bu picked up depending on location. Buyers are encouraging any reasonable offer to be brought forward rather than posting a standing bid. Buyer’s inquiries for higher quality fabas have slowed. That said, $9.00/bu FOB farm is a reasonable target for #2 quality. Dry bean acres are forecast to decrease for 2021. This isn’t new news, but it was once again further reinforced in the recent StatsCan report. Shrinking new crop acres has prompted a bit of an uptick on old crop values with some buyers.

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.


Rayglen Market Comments – April 21, 2021

Canadian flax exports have more than doubled from last year and with an estimated increase in the StatsCan seeding intentions report next week, we hope to see that export strength continue. If you still have flax in the bins, prices vary depending on movement.  New crop is still holding strong at $16-$16.75/bu picked up with an act of God. The Kazakh market is still hard to decipher, as the National Statistics Service reports 405,000 tonnes of flax inventories as of April 1. However, flax prices also remain at record highs despite these heavy stocks which is a tad surprising. A couple things could be happening; farmers aren’t selling, keeping prices supported and/or the quality is poor. European flax prices seem to have levelled off causing crush margins to drop significantly. Analysts are pretty confident the highs have passed for old crop flax, so now it’s time to weigh in on these new crop values.

The mustard market remains very strong on both new and old crop product. Current spot bids are showing yellow up to $0.45/lb picked up on farm for #1 quality, brown mustard up to $0.40/lb and oriental up to $0.35/lb for Forge and Vulcan type. Cutlass type still carries a couple cent discount. New crop bids are similar to spot prices to encourage growers to stick with mustard. This push is needed with so many other profitable cropping options this year. The biggest hurdle for many growers to consider forward contracting still seems to be moisture concerns. Recent snow events have helped some, but not made too big of a dent in the shortfall; we still need rain. As always mustard production contracts do come with an act of God, mitigating marketing risks in the future, while keeping your farm protected in the event of a total production loss.

The milling wheat market continues to see strength this week with bids based on #1 quality with 13.5 % protein sitting around $8.70/bu delivered plant for April-May. Growers with #1 product & 12.5% protein can expect bids in the $8.50/bu delivered range for the same timeframe. Short term need seems to be in play as further out bids for June/July drop considerably. New and old crop durum bids remain unchanged with production values at $8.25 to $8.50/bu FOB farm in the Southeast part of Saskatchewan. Spot values are indicated at $8.50/bu range delivered to plant throughout most of Saskatchewan. Feed wheat markets have seen a bit of an uptick again this week, making its way back to previous highs of $7.75/bu FOB farm in many areas of Sask. and over $8.00/bu FOB farm in Alberta. It looks like now is the time to sell any milling or feed wheat left in the bins!

Barley remains unchanged from the week previous with old crop still trading in the $6.00/bu FOB farm range, depending on the area. New crop values remain the same with availability to lock in $5.00/bu FOB farm in many locations. If you are still sitting on old crop or planting new crop, we stick with our previous suggestion: it just may be time to sell! Although the market does not seem to be dropping off at all, it also isn’t going up either. As growers hit the field and therefore harvest is right around the corner, a last-minute push on old crop seems unlikely. It stands to reason that values for old crop feed barley throughout the year were more than adequate to purchase enough stock to cover needs until new crop. Buyers are still willing to purchase, however, expect bids to stay similar with delivery windows getting pushed out. Recent snowfall will help barley crops get off to a better start, so put some of your new crop barley on the books at these very attractive values and leave the rest to the open market. At this point it’s no secret that current values are being driven by Chinese demand and although this makes the numbers look great, those markets can dry up overnight. Your goal may be to capture an additional 10-25 cents, but are you prepared for the potential $1-$2 drop? It’s all a risk vs reward situation and hedging against the potential downside is likely a good option.

Oat trading has been pretty quiet as of late. Buyers seem to have an abundance of coverage on the books, thus not having to chase any old crop or even post a bid, as is the case with many of our buyers. Old crop milling prices are hovering around that $3.70/bu range picked up on the farm in the right location, granted you can find a purchaser. Feed oats have also run into a similar marketing phase as this soft trend has producers sitting on product. Buyers are looking for good heavy feed oats which would garner bids around $3/bu. If you’re looking for a better price let your merchant know as an offer may be the best way to go.

There is very little change in the pea market as prices continue to hold their values over the past couple of weeks. Yellow peas are at $10.00/bu delivered, with new crop values at $8.50 – 9.00/bu picked up depending on location and movement period. Green peas remain quiet with $9.50/bu picked up being available in few locations. New crop pricing is holding at $9.00/bu. Maple peas also remain at $9.50 – 10.00/bu picked up on old and $9.50/bu picked up on new crop. Shipments have slowed down on peas, as yellows are hard to come by and buyers have softened their bids to wait for new crop. There is also still a good chunk of green peas on farm, however, buyer and grower price expectations have yet to align. We are expecting a drop in green pea acres so that brings hope that this market could move back to its premium position for new crop.

A nice shift in chickpea markets this week as StatsCan reports an improvement in export numbers at 15k MTS which is also the highest it’s been since April 2019. The Mexican harvest has been reporting 5-year average lows on production and with the rumors of Indian tariffs being lifted and questionable supply in India and Pakistan, chickpeas could be on the rise again. On the buy side, the demand is steady and starting to show improvement on bids. Old crop #2 Large Kabuli chickpeas are being bid at$0.34-$0.35/lb FOB farm for May-June with new crop bids as high as $0.355/lb delivered to central SK. plants. There is still strong demand for low quality product, but this becomes a needle in a haystack situation on the seller side – hard to find. All eyes are on chickpeas as they start to come to life again after a very long nap.

Canola futures continue to fly high, almost hitting limit up yesterday on the nearby months and seeing solid gains into the new crop months as well. May futures are at $871/MT currently, which is up from $834/MT last week. July futures are at $814/MT, which is also up big from last week when we saw $761/MT. There are many factors out there that have led to this rally in canola. Technical signals are looking bullish which has speculators adding to their positions, meanwhile soy has given support to the canola market as well. Add extremely tight stocks on the farm, dry weather, and slightly weakening Canadian dollar and you get a perfect storm for price increases. November futures have not shied away from the higher prices either and sit at $680/MT, up from $638/MT last week. With some attractive local basis options out there, signing up some new crop is very tempting to many growers.

Lentils have stabilized this week with prices remaining relatively unchanged. We are seeing a slight variance in the abundance of new crop red traded at $0.30/lb FOB farm with an AOG, but some targets are still triggering.  This week, reports suggest the price of red lentils in India has jumped by $61 USDA/MT since the start of April, but due to import tariffs it’s still tough for companies to put a large number of sales on the book. This, along with rising COVID cases in India will influence pricing going forward. When COVID cases rose in Indian last spring, we experienced a strong response in Indian purchasing along with reduced tariffs, which may be the case again. We also patiently await the arrival of StatsCan’s projected seeded acreage report next week. The early prognosis is that lentil acres will be slightly lower than the last average, thus, making supplies for next year tight even if we produce an average crop. If acres are down more than previously thought it may cause a slight rally in new crop pricing. More on this subject next week once the report is released.

U.S. planting delays and dwindling old crop supplies continue to drive soybean prices higher and higher. China has signaled that they may be backing off the proportion of corn and soybean in livestock rations. The market seemed to breeze past that memorandum and continues to trade higher values. Local soybean bids continue to hover around $16.25 bu picked up depending on location. The faba bean market continues to have decent demand for higher quality grades. Good quality #2 Faba bids are in the range of $9.00/bu FOB farm location dependent. Dry bean market prices remain well supported coupled with healthy export numbers. New crop dry bean acres are forecast to decrease both North and South of the border.

Canaryseed has continued strong this week, and we are seeing an average spot price of about $0.33/lb FOB farm for July movement. That said, we have had a couple targets triggered for higher. New crop is sitting around the $0.30/lb mark for Sept. to December pickup with Act of God, again with a slight opportunity for stronger contracts on offer.  Getting 10bu/acre on the books to take some risk off the table may not be a bad play, especially with an act of God clause. We have booked quite a few acres recently, so be sure to talk to your merchant. For those looking to move spot canaryseed sooner than later, we may have some options available for May around $0.32/lb.  Acres are still projected to be up around 10, which doesn’t seem like a lot if that’s indeed accurate but may be enough to keep markets at bay. On the other hand, there is also some thinking that available farm stocks have and are tightening, which could perhaps cause more action in the near term. We will have to see how this plays out in the next few months prior to the new harvest. Last minute seed is still available so call your merchant if you’re in need of some.

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.


Rayglen Market Comments – April 14, 2021

Pea shipments continue to slow as export demand becomes quieter and as a result, bids have softened over the last couple weeks. The good news today is that we are still trading the same values as last week with yellow peas at $9.50/bu picked up on old crop, while new crop values are bid at $8.50 – $9.00/bu pending delivery timeline. Green peas have had targets hit at $9.50/bu picked up on old crop and new crop values are quoted at $9.00/bu picked up. Maple peas remain quietly priced at $9.50 – $10.00/bu with new crop at $9.00 – $10.00/bu picked up (variety and location dependent). Reports show that India’s pea prices continue to drop which is a signal of a larger harvest. Therefore, it seems unlikely that any import restriction will be lifted as their prices continue to fall. The Canadian pea market will again depend fully on China’s repeat demand. We also must keep an eye on China and Ukraine to see if they reach an agreement on phytosanitary issues, as this would increase our competition into China.

Canaryseed has seen a bit of life in old crop markets at the beginning the of the week, with buyers looking for product in the $0.33/lb FOB farm range for summertime movement. If you are looking for quicker delivery, you may be able to capture bids around $0.30-$0.31/lb FOB farm for April/May. Although we don’t have firm bids there, we suspect targets will get some attention. New crop still seems to be holding at $0.30/lb FOB farm in good freight locations and no more than a penny less for locations further from plant. A few southern zones received a much-needed precipitation event this week and those areas should now have at least some moisture to seed into. That said, with acres projected to increase and better moisture conditions, we may have a good size crop come off in the fall. Getting 10bu/acre on the books to take some risk off the table may not be a bad play, especially with an act of God clause. Of course, seed is still available so call your merchant if you’re interested.

Barley markets remain unchanged and there is not much to say that you haven’t heard in previous weeks. The feed market remains strong with new crop still being priced in the $5.00/bu range FOB farm, give or take, pending location. Given the recent snow fall across many areas these past couple of days we should see some better moisture conditions to get this year’s crop off to the right start. Old crop barley continues to be bid at the $6.00/bu FOB farm range, again with wiggle room on both sides of that value pending location. Suggestions are still the same today as in previous weeks; make sales on the remainder of old crop and get 10-25% of expected production on the books, while playing the open market on anything over and above. The malt side of the barley world remains quiet and tough to find a true and accurate bid. With feed values as strong as they are, this becomes a risk vs reward scenario. Whether it be the crop holding up throughout the growing season, or holding dormancy in the bin, current feed values may push growers towards the “easier” market. The recent price spread, or lack thereof, it seems like a straightforward decision on which way to go. Seeding is not far off in most areas, so we expect to see producers buckle down and making those last-minute decisions. Whether this will have an impact on current values is hard to say, but if you are stuck on which way you want to go, we would highly suggest not to think too long and take those profits where available.

The milling wheat market has really been showing life this week with prices ranging from $8.45 to $8.52/bu for April-May delivery based of a #1 quality with 13.5 % protein.  For #1 Product with 12.5% protein, bids have been ranging between $8.25 to $8.35 for April-May delivery. New crop durum has been showing some life as well and has been trading between $8.25 to $8.50/bu FOB farm in the Southeast part of Saskatchewan.  Looking at old crop durum, bids have been trading between $8.50 to $9.00/bu delivered to plant in many areas. Feed wheat has held on for another week, trading between $6.50 to $7.50/bu FOB depending on farm location. The highest bids for feed wheat have been in Western Saskatchewan and Eastern Alberta.  

No major changes on flax prices this week, despite some areas of the province lucky enough to receive moisture heading into seeding. Old crop prices vary, so call us with what you have in the bin.  New crop prices are still holding strong, ranging from $16-$16.50/bu picked up depending on movement timeline and location. Analysts are expecting smaller amounts of flax moving to the EU due to smaller supplies available, with exports from the Black Sea region into the EU also falling off. However, exports to China were up 63% from last year, suggesting that there was a shortfall in China’s own flax production and a key factor in the market shift this year. Chinese production will be a variable on global markets for this coming season. This, combined with an increase in overall flax acres increasing in key producing countries, might mean taking some risk off the table and looking at these new crop prices is a good play.

Chickpea markets maintain tone for another week. Snow over parts of the prairies is a welcome sign for most for obvious reasons and calms a bit of the concern for both buyers and sellers. No new information out of India or Mexico on production quantity or quality and values remain flat. Historically chickpea values tend to soften during seeding and through the summer months but with grower floor price expectations higher than buying capabilities, expect values to remain flat. Old Crop bids for a #2 or better kabuli are $0.32-$0.33/lb FOB farm and $0.30/lb FOB farm W/AOG for new crop. We are not seeing a lot of business done at these levels and encourage sellers to set targets for buyers to realistically work with.

Mustard values have been strong this past week and we saw a nice jump in some old and new crop bids, particularly in yellow and oriental mustard. Concern over dryness in mustard growing areas and the number of acres being planted may have crept into the equation as of late. Advertised spot pricing sits at $0.40/lb on #1 brown mustard now, while yellow is up quite a bit to $0.45/lb on #1. Oriental has seen values move to $0.35/lb on #1 depending on variety. Oriental still carries a 2-cent premium on Forge type over Cutlass which sits at $0.33/lb now. Movement can be as short as May and as long as June/July on some contracts, so talk to your merchant for options that meet your needs. Bin space and cash flow are always factors involved and we have options to satisfy both. New crop mustard values are very similar to the old crop prices. These are some very aggressive new crop prices that we have not seen in quite a while. It’s important to talk to your merchant this week about options for new crop pricing in regard to movement. If you are stuck for seed, last minute options may be available for all types of mustard and possibly still delivered to your yard if you live in Saskatchewan. Call us anytime for new crop and seed.

Oat acres for this upcoming year are expected to decrease a bit but potential supply levels can be recouped so long as yield production and quality are present. Demand is also expected to taper off as there was a marked influx this year due to inflation buying because of Covid. As well, there was also Chile’s random insurgence in the import market which was great to see but that looks to be more of a “one hit wonder.” In regard to pricing, we have seen the oat market soften a bit as buyers look to be pretty well covered. Expect bids closer to the mid to high range $3’s depending on farm location. New crop bids are a little softer as buyers have been doing what they do best, buying. So, to catch $4.00/bu look for movement from Mar./April onward of 2022. The feed side is a tad quiet with bids around that $3.00/bu picked up. If you are looking for a bit better, give your merchant a call as an offer may be the best way to go.

Even with some much-needed precipitation across most of the prairies this week, canola futures markets continue their torrid pace upwards. At time of writing, May futures are at $834/MT, up from $793/MT last week. July futures are sitting at $761/MT today which is up from $735/MT last week. Not much has changed of late to stop this momentum upwards as recent moisture hasn’t done enough to ease people’s thoughts of drought as seeding approaches. Combine that with canola stocks continuously getting tighter and support from veg. oil markets, we can see why this market doesn’t want to slow down. New crop futures are also rising as November futures are now up to $638/MT, which is $9/MT higher than last week.

Lentil pricing is seeing some support this week, especially on the new crop side of things.  Buyers are really trying to lock in new crop acres to get some coverage for Fall deliveries. On large green lentils we are seeing bids trade as high as $0.35/lb FOB farm with an act of God. This is only a cent behind old crop pricing.  Reds are following the strength trading around $0.29/lb FOB farm for new crop and between $0.30-$0.31 on old crop. There are lots of rumors that India is back in the market for lentils, but nothing has been confirmed. At this point markets are rallying due to the fact that we are mid-April and very little new crop contracts have been put on the books to cover the demand.  If buyers are just looking for some coverage for fall, expect these markets to soften if/when growers start to make heavy sales. Current best guess is that buyers are not likely looking for big tonnage at these levels this early in the game.

Soybean futures are taking their lead from corn. US planting concerns and domestic soybean crush demand underpinned support for the overnight gains. Local soybean bids continue to hover around $16.25/bu picked up depending on location. The Faba bean market continues to have decent demand for higher quality grades. #2 Faba bids are in the range of $9.00/bu FOB farm, location dependent. Dry bean market prices remain well supported coupled with healthy export numbers. New crop dry bean acres are forecast to decrease both North and South of the border.

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.


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