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Rayglen Market Comments – January 26, 2022

After a week of ups and downs, the canola market has settled, now trading sideways this week. Some profit taking has been putting pressure on, but strength in crude oil has been giving support to vegetable oil prices and levelled the playing field. When it comes down to it, prices need to stay high to limit exports and ensure we have enough canola to crush domestically. March futures currently sit at $995/MT, which is exactly where we were at this time last week. Some buyers have started trading off the May futures, which is at $990/MT. Looking to new crop, November futures have continued to show strength and are at $836/MT. This represents a large increase from the $800/MT we were seeing last week.

Flax prices went down again this week, with bids stretching to $36-$37.00/bu picked up. More signals that the highs on flax prices from a couple months ago are past their prime. The average bids in the US have started to decline and that is where most of the strength in Canadian prices was coming from. If the Russian flax production estimate is close to accurate, then global supplies aren’t that tight. New crop flax prices continue to hold in the $24-$25/bu range picked up with an act of God.  With a year of historically higher spot prices, new crop is also historically high, and a serious look needs to be taken at locking some acres up at these values.

Despite the lowest predicted carry since 2003, the canary markets are unseasonably quiet. Historically there would be a rally this time of year but that does not seem to be the case as Argentina continues to export to Brazil.  Current crop values range from $0.44-$0.47/lb FOB with freight sensitivity. This has not been contracting on the regular, but the feeling is this is due to lack of supply vs lack of interest. New crop bids are $0.35-$0.36/lb FOB farm for Nov.-Dec. and generating very little interest. The feel of the market is that despite a potential acreage increase for the coming season, demand and values will maintain strong tone.

Chickpea markets have experienced over $0.10/lb drop in the last couple weeks, but in the grand scheme of things, they still hold decent value. There was a spark of a rumored tender in the market, but that has yet to come to fruition. Old crop #2 Kabuli bids are around $0.43/lb FOB farm, and it is believed there is still quite a bit on farm. Sample grade chickpeas are valued at $0.30/lb and new crop values are indicated at $0.30/lb FOB farm with and AOG. There seems to be a bit of buyer hesitation to own any large parcel of chickpeas right now, but buying interest is steadily present.

The pea market had been sideways for quite some time and just in the last 2 weeks we have seen the values take a correction and start to pull back. US demand that was holding up yellow peas bids has been filled and prices have softened. Old crop yellow peas are currently at $17/bu picked up, but freight and location sensitive. Green pea pricing had a sharper fall this week, from $15.50/bu down to $14/bu, as there appears very little overseas demand. Maple peas pulled back slightly, but $17 – 17.50/bu is still available depending on variety and location. What has remained strong in the pea market is new crop pricing. We have a seen $13/bu picked up with act of God trade on a few acres of yellows this week, while green peas have had gained some interest at $12/bu picked up.

Demand and pricing both softened in the past 2 weeks; however, oat pricing is still at historically favorable levels. Old crop pricing based on a #2 quality is at $9/bu depending on location with movement getting pushed out into spring. New crop values are also at $6/bu picked up for a September – December shipment and possibly higher for growers willing to hold onto product until 2023. If you still have feed quality oats in your bin, depending on weight and reason for downgrade, $6/bu has traded into the feed market. Please have specs on hand so we can effectively market your product!

Talks around barley remain quiet on the old crop side of things, but the new crop values that are being thrown around are attention seekers. Old crop feed barley sits in a widespread range with levels of $7.50 up to $8.50/bu being quoted, all depending on timeframe and location. Spot malt barley still does not seem to be a topic of discussion, but rumors of $8.00/bu FOB farm new crop with an AOG are floating around. New crop feed barley is showing some historically big numbers and ranging anywhere from $6.00 – $6.50/bu on farm, depending on location. This however does not come with an AOG, so there is some inherent risk, but locking in 5% – 10% of your expected production should leave you pretty safe. Although markets seem hard to catch as there is sporadic highs and lows daily, your best bet is to call in and show us what you have. Let us do the work for you and try to get your top dollar. Although the number on old crop seems lower and not much of a selling point for growers, at the end of the day these are still very strong values to lock in some product.

Red lentil markets are feeling all sorts of pressure as of late. Markets are sliding due to increased domestic farm sales, decreasing demand for high priced Canadian lentils when other countries are willing to sell for cheaper and Australia’s logistical system freeing up. New crop reds are also under pressure as early speculation is suggesting an increase in acres, larger carry out than first estimated and reports of a good start to the Indian crop. Moisture is still a concern for most of the lentil growing areas in Canada, but at this point it is too early for it to affect the market. Farmers are showing some interest in signing up new crop reds, but these programs are filling fast as the tonnages and acres are limited. At this point in time there is more information pointing to a weaker red lentil market than a stronger one. Due to the prices changing so quickly this week it best to call to discuss bids on your farm.

The wheat market rollercoaster continues on this week as what started off good has soured, dropping some bids roughly $0.25 – 0.30/bu. Delivered in bids on a 13.5 pro #1 sit at roughly $11.70 to just under $12/bu with the later for pushed out movement. HRW crops in the US continue to run on the dryer side pushing crop conditions down, which you would think would show some price support, but to no avail, so far. Then there is the geo-political issue with Russia and Ukraine that could impact wheat prices moving forward. Feed pricing has also taken it in the teeth as delivered in bids into feedlot alley seem to be hovering around $410/MT. Sitting outside of this strike zone doesn’t seem as friendly with SE Sask right around $10/bu as the going rate. Looking for the upside? Look no further than new crop durum.  With a #3OB, trades have triggered in SE Sask around $13/bu but if you have an offer, you may be able to snag a little bit better. Old crop pricing seems to be holding on around $19.50/bu in the South half of the province give or take a quarter.

Private analysts expect the combined South American (Brazil, Argentina, Paraguay, and Uruguay) soybean output to be a 4-yr low of 186.3 MMT. This spurred double digit gains on the Chicago futures. Local bids are location dependent and range from $14.50 -$15.50/bu FOB farm. Dry bean bids remain buoyant predicated on the smaller 2021 crops in Canada and the US. Canadian bids are feeling downward pressure from recent gains in the Canadian dollar. Dry bean market needs to see an uptick in demand for these production decreases to create any upward price movement. Faba beans are currently largely driven by domestic feed pulse prices. Feed faba bids are in that $13/bu FOB farm range and when #2 demand periodically occurs, it is often near $15/bu FOB farm.

Mustard markets remain level this week. This is the second week in which we have seen prices stabilize. New crop contracting continues at a good pace, which is not surprising with levels being so strong. New crop brown and oriental are trading in that 70-75 cent/lb range with yellow at 75 to possibly 77 cents/lb. New crop mustard contracts of course include an act of God & are picked up on farm. Spot prices remain solid, with yellow and brown around $1.50 -$1.75/lb FOB and all varieties of oriental quoted at $1.00/lb or better. Those with product in the bin may want to consider taking advantage of these values while they’re still available as the levelling of prices may suggest the market is topping out. This is yet to be seen so we will need to monitor prices and demand from buyers. We have seed remaining, so if you’re in need, we can supply all types of certified, treated, or untreated and delivered to your yard.

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 – January 19, 2022

Barley markets have seen a slight dip in value this week with bids now indicated at $7.75 – $8.75/bu FOB farm depending on area and freight costs. These values continue to be quoted for March-May shipment with little to no demand seen for quick movement. Historically speaking, these are still amazing prices to offload feed barley. Not much for news in the way of malt, but if you are sitting with some on farm, your best bet is to call in with specs and let us see what values are attainable; indications have been quoted around $10.00-$10.75/bu FOB farm. New crop malt figures still seem to be somewhat up in the air, but depending on delivery timeframe, area, and variety, we have had bids pencil in around $8.00 – 8.50/bu FOB farm with an act of God. Please call your favorite merchant to discuss the contractual obligations required to obtain the AOG. New crop feed values are still indicated around $6.00/bu FOB farm and for those looking for a bit more, a firm target is likely going to get some attention.

As we know, markets started to pull back last week with the downward trend continuing into this week. The decline in bids was predominantly seen in green and maple peas, but yellows didn’t go unaffected. For those still holding yellow peas, we do have one option left at $18/bu FOB in South Central/Southeast Sask. for a deferred shipment window. Outside of those areas, values have dipped to $17/bu FOB in the glyphosate free market and $16.50/bu FOB range if they’ve been sprayed. Green pea bids have backed off to $15/bu FOB, with limited buyer interest, while maple peas are now priced at $17 – 17.50/bu FOB. New crop bids remain steady, and we are still able to trade $13 – $13.50/bu FOB in Southeast Sask. for yellow peas. We continue to recommend firm targets at $13/bu in other areas. New crop green peas have seen some life this week with the first new crop trade hitting the books at $12/bu FOB farm with an AOG; a good price to start thinking about locking in a few bushels.

Prices on flax this week are signaling downwards and without much demand, bids are sitting around $38.00/bu picked up in most locations. Canada exported 80,000 tonnes of flax during the first four months of 2021/22, this is compared to a 5-year average of 126,000 tonnes. Reports out of Russia are showing a jump in flax acres, so, while the yield was below average, there was a 40% increase in supply from 2020. This explains why prices out of the Black Sea region haven’t risen as high as Canadian prices and why Russian flax has dominated Chinese imports. Import demand from the US kept Canadian flax prices at an all-time high, but there is still a limit on what the crushers to the south of us need and that demand has backed off.

Well, the old adage of “high prices cure high prices” appears true once again. For months now buyers have been hinting that these prices were higher than the market could sustain and now that growers are willing to make sales, the market can’t handle the pressure. All grain markets have slipped back a little in the last 4-5 days and lentils are no exception. There are a few factors that are affecting the market; there is more product coming to the table than there are back-end sales, shipping is below average and cheaper product is available from around the world. With the combination of reduced shipping and high prices, expect to see an increase in ending stocks as we near summer. The increase in ending stocks will likely not be a huge adjustment, but just enough to keep markets from rallying.  Prices do however remain at the upper end of historical highs for both old and new crop. Buyers seem to have limited tonnage for both old and new crop making pricing very volatile. Think execution over hesitation when markets are changing this fast.

We’ve got a pulse folks. A breath of life has put some wind back into the sails of the milling wheat market, thank goodness. On a #1 CWRS 13.5 protein look for $11.80 – $11.95/bu range delivered in Central Sask. for Feb./Mar. timeframe. Now you can exhale as the wind is still a tad lackluster when it comes to the feed side. Buyers seem to be around that $10-$11/bu picked up on the farm depending on location. Movement is pushed out as a wealth of corn has been infiltrating the feeders for some time now. Switching gears to durum, new crop trading is going strong around $13-13.50/bu range in Southeast Sask. Old crop has softened to $19.50-20/bu delivered in. Buyers are always on the search for product so if you have a different price range and movement in mind give your Rayglen merchant a call.

The oats market has been quieter in recent weeks as buyers have covered a good portion of their needs this crop year. Spot bids are showing prices around $9/bu on farm (depending on freight area) for a #2 quality product still in the bin. Movement for many buyers has been pushed out into summer months at this time. Feed oats prices are just north of $8/bu in many areas depending on what the downgrade factors are. If you are planning to seed oats this year, there’s some very attractive levels on new crop out there at $6/bu or a bit better for fall movement with prices carrying a bit more clout into Winter/Spring of 2023 for those with storage.

After a week of consistent decreases, canola futures are showing signs of recovery today. While prices have not returned to their yearly highs, a significant bounce back today is an encouraging sign for those with canola still in the bin. Strength in crude oil and support for vegetable oil markets around the world are helping raise prices today. March futures currently sit at $995/MT, down from this time last week when they were $1010/MT. Looking out to new crop, bids have strengthened and now sit at $800/MT on the November futures. This has increased since last week when they were at $790/MT. Depending on local basis level, some bids may be available for over $18/bushel for fall delivery. This is very strong and worth looking at.

Pricing has taken a hit on most specialty crops this week and canary seed is no different. With low demand being a common theme at historically high prices, bids for canary seed have slipped down to 48 cents/lb FOB farm for a Feb.-April movement period. Bids at this value do not appear to be very deep and if a few sales are made, we could see further price drops. Typically, the next major export season for canary will be around April/May. With that being said, this year has been anything but typical and we will have to keep a close eye on demand levels and how many buyers are aggressively looking to purchase. New crop values are still historically strong between 35-36 cents/lb FOB Farm for Sept.-Dec. movement with a full AOG on the first 10 bu/acre.

Soybeans have found some recent upward momentum due to questionable South American production forecasts and decent domestic crush demand. Local bids are location dependent and range from $14.50 -$15.50/bu FOB farm. Dry edible beans saw a decrease in local bids over the holiday season. Recent USDA reports indicate a year over decline in production, but somewhat moderated by carryover inventories. Mexico dry bean production is anticipated to be down year after year, with some reports as high as a 30% decrease. A return to “normal” demand is required for these production decreases to create any upward price movement. Faba beans continue to ride the wave of strong domestic pulse prices. Feed faba bids are in that $13/bu FOB farm and when #2 demand periodically occurs it is often near $15/bu FOB farm.

Mustard markets remained very strong this week and seem to have stabilized for now. We are seeing a bigger uptake in new crop contracting as of late from the grower side, which is not surprising. New crop contracts remain very strong for brown and oriental in that 70-75 cent/lb range with yellow up at 77 cents or even higher on offer in some cases. New crop mustard contracts of course include an act of God & are picked up on farm. Spot prices remain very strong also, with yellow and brown around $1.50 and all varieties of oriental quoted at $1.00/lb or better. Something of interest to note; we have seen one mustard buyer go “on hold” for spot purchases while they reevaluate their position. Does this hint at mustard markets quieting? Those with product in the bin may want to consider taking advantage of these values while they’re still available. We have seed remaining, so if you need seed, we can supply all types of certified, treated, or untreated and delivered to your yard.

Chickpea markets continue to struggle this week. Most buyers are reporting that slow foreign demand and shipping issues continue to plague the market. Bids continue to hover around $0.46/lb FOB farm for March to June movement, with the odd bid popping up on a case-by-case basis at 47 cents, but these opportunities remain few and far between.  Moving chickpeas in February looks near impossible right now and, in many cases, it is difficult to even get a bid from buyers. Rumors of a chickpea tender are out there and maybe that helps to provide some support. This is yet to be seen, and we will update you on any developments on that front. New crop has a bit of talk in the $0.30-$0.35/lb range, but very remains quiet.  Seed will likely be in demand as we are hearing reports of some terrible germination numbers in last year’s crop, so it is wise to send your sample off for germ tests to avoid surprises. Call us if you need a quote on some seed delivered to you.

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 – January 12, 2022

The feed wheat market is running mostly sideways this week. It seems $11.50/bu picked up on farm is attainable in most corners of the province, but that price comes with a movement window pushed into the spring timeline in most cases. Current bids, in many locations, on #1 CWRS do not show much better and in some cases are worse than the feed price. When comparing these two, #1 wheat bids are quoted as delivered plant, rather than FOB farm. Current bids on durum are floating around $21/bu for #1, 13% protein in many areas of the province; product remains in light trade. There have been some prices indicated for new crop fall delivery durum in and around the $13/bu mark as a starting point, but these contracts don’t carry an act of God, so there is some inherent risk there as well. If you want more info. on any of those programs feel free to reach out to us.

The pea market remains the same for yet another week. Most of the demand for yellow peas is coming out of the United States as we have priced ourselves out of the overseas markets. Therefore, if the US and local demand slows down, we may see yellow peas pull back a bit. Currently, yellow peas are priced at $17 – 18/bu picked up, with the latter being seen in limited areas and for pushed out movement. Green peas bids are at $16/bu delivered but this market remains quiet as demand continues to be lacking. Maple peas have slipped a bit with bids now at $17 – 18/bu picked up. Looking at new crop, the only peas with a posted bid are yellows at $13/bu FOB farm, location dependent, so speak with your merchant on details.

The barley market and consequently pricing seems to have found some equilibrium based on comments made in earlier reports.   Corn is starting to supply many feed lots so demand for feed barley seems to be slowly dropping off. There is still opportunity to sell $8.50-$9.00/bu FOB today, but don’t expect the movement to be any sooner than March forward. Previous barley purchases seem to have buyers covered for Jan. to Feb. timelines, especially when you factor in corn subsidies or in some cases replacement in rations. The malt side remains quiet for trades, but demand is still seen from a few buyers. Your best bet is to call in with specs & details and let us see what values are attainable, but recent indications have come in around $10.50/bu FOB. We aren’t seeing too much for quotes on the new crop side of things, but we suspect targets around $6.00/bu FOB farm for feed and $8.50/bu for malt may get some interest. Although contracts are quoted without an act of God, locking in 10-20% of your expected production should be pretty conservative, offering you a good start to cashflow and bin space.

No change on the canary seed front as the market continues to hover around $0.50/lb picked up with pushed out movement, predominantly March onwards. If you are looking to get some activity a little sooner, knock the price back a penny or two as shipping for Jan./Feb. continues to be tight as buyers appear to be decently positioned. The next export shipping period for canary will be Apr./May so it will be interesting to see how much volume buyers still need to purchase to fill the boat. With tight stocks the last couple years now, pricing looks favorable moving forward for new crop. Buyer interest with an act of God ranges around $0.35-$0.37/lb depending on farm location.

Flax markets have become quiet in the new year. The highs we saw a month ago have trended down and this week prices sit at $40.00/bu or less. New crop pricing can still be captured at the $24-$25/bu range, picked up with an act of God. Signals from oversea markets are weaker as there is competition from the Black Sea region. There is also some demand rationing taking place. This trend is something we saw coming as the US market kept the prices high, but their demand has been filled. New crop yellow flax indications are around $30.00/bu. Seed supply remains tight, so if you are needing seed for 2022, best to call our office sooner than later.

Lentils had another slow week of trading with the feel that values may be backing off a little. Common bids seem to be around the 44-45 cent/lb mark for red lentils, 62 cents/lb on large greens and 59-60 cents/lb on small greens, but bids are getting harder to find as the week moves along. Not much has been seen yet for new crop lentil programs, with buyers and sellers seeming to be a couple cents apart on pricing. A minimal number of small reds have traded around 30 cents/lb this week, while small greens are bid around 40 cents/lb delivered for #2 quality. Large green lentils remain pretty much a non-topic but based on some medium green lentil trades done in the US, large greens should likely be valued around that 35-37 cent range for a #2. We will wait and see what price farmers try to target or if a buyer steps up with a program.  At this point in time, conversations with buyers indicate that there will be contracts available, but not to expect large quantities being booked. Once a program fills that maybe it for the year.

Chickpea markets have seen a sharp decline in value over the last 7 days. Bids for a #2 or better Kabuli went from $0.53/lb FOB farm to $0.485/lb overnight. Current values are hovering around $0.45/lb FOB farm for Feb.-April movement and the phones are lit up with sellers looking for that $0.50/lb option.  So, what happened?! One explanation and most plausible is time… the current levels on a global scale have not been supportive of trade and therefore the bins remain closed. As time has passed, other countries have harvested, seeded, sold… rinse & repeat to the point where the demand out of North America is minimal. Pet food is one of the main drivers for chickpeas and the depth of that market is not endless. So, what does it take to see a spark in this old dog?? World Food Tender? A wreck from an international market? Sudden demand to replace perogies with chickpeas?? New crop has a bit of chatter, as well as rotation concerns, which could mean more chickpea acres than initially anticipated. Seed will be in demand so if you want another opportunity or are looking to get a leg up, send your sample off for grading tomorrow morning and know what is in the bin. New crop values are a shot in the dark but rumblings from $0.30-$0.35/lb are being heard.

Mustard markets are still wildly strong with spot product showing bids above a buck on Oriental, Brown and Yellow and in some cases the bids are closer to a buck and a half. That said, tradeable levels are still above current bids so if you’re looking to sell what is in the bin let us know what the number is you’re looking for and we will post up a firm target. New crop contracts are all above 70 cents now as the last week has perked up a little bit on oriental to catch up a little to brown and yellow. New crop mustard contracts of course include an act of God & are picked up on farm. To top it off, we have buyers showing interest in movement terms suited to your needs. If you need seed we have options on certified seed, treated or untreated, at delivered to your yard prices.

For the first time in a while, this week brought a drop in canola futures. March futures are at $1010/MT, which is down from the $1026/MT we were seeing last week. Most of the losses have come on Wednesday with only slight drops on Monday and Tuesday. Some profit taking as well as uncertainty leading up to today’s USDA report have caused some of the declines. The USDA report should give indication to how yields are expected to be affected by dryness and heat in South America. Strength in energy markets could keep prices positive moving forward as well. Looking out to new crop, November futures have stayed sideways from this time last week and are trading at $790/MT. This has translated to some local bids over $18 and it’s worth taking a look at these options while prices are high.

The top focus for soybean markets is today’s WASDE report and South American forecasted production. US soybean production was adjusted up slightly, but the bigger story is reduced production out of South America. Early harvest reports out of the Northern Brazilian state of Mato Grosso are positive, however the Southern states are where the concern lies. More will be known as harvest progress continues to move south. As for today, those concerns have the soybean market rallying with local bids of $16.25/bu FOB farm. Domestic feed values continue to support the Faba bean market. Feed fabas continue to trade near $13.00/bu FOB farm and #2 export quality is trading around $15.00/bu FOB farm. Dry bean market news is focused on Mexico and Argentina. Mexican bean crops appear to have produced above average volumes as local bids have been slipping as of late.

The oat market is enjoying strength due to a 30% decrease in available supply relative to the previous 5 years. A somewhat return to normal demand pattern is also assisting in stoking the fire. Old crop milling quality oats are trading around $10/bu FOB farm and feed quality oats are around $7/bu FOB farm, quality dependent. New crop milling oat contracts around $6.00/bu FOB, with a roll over option to the following year on tonnage or quality shortages, can likely still be had. New crop planting intentions are anticipated to be up as oat production economics pencil well.

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 – January 5, 2022

Canary seed markets remain unchanged over the past few weeks as end user demand still doesn’t seem to be overly aggressive. The $0.50/lb range bids are still floating around for old crop, but growers should expect delivery windows to pushed out to Feb./Mar. and forward. New crop values continue to be bid around $0.35 – $0.37/lb with an AOG depending on your location. Historically these are still good values to lock in your first 10 bu/acre. Although the market seems to be quiet lately with not much change, the prices that are being offered are still of great value.

The demand for oats seems to have dialed back a bit given the recent snowfall in oat country and throughout the provinces over the last few days. New crop values are still being reported around that $6.00/bu FOB farm range, but bids don’t seem to be as deep. If you are on the fence, we would suggest getting something locked in at this outstanding value should it fade away on us. Old crop milling is quoted around $9.50/bu FOB, but in the same boat as new crop; we aren’t sure how deep that value runs. On the feed side of things there doesn’t seem to be a huge amount of interest, but one can pencil in $6.50 – $7.00/bu on farm for good heavy feed oats. It may sound like a broken record, but we see the tendency to hold out for another $0.10 – $0.20 cents/bu, which is sometimes successful, but should the market falter, it will likely drop faster than it climbed.

The pea market remained unchanged over the holiday season. Yellow peas are mainly priced at $17/bu picked up; however, $18 FOB is attainable in very few locations with the movement being pushed out to April – June. Green peas are bid at $16/bu delivered, with several delivery locations available. Maple peas remain priced at $18 – 19/bu picked up depending on location and variety. What has popped up recently is a non-GMO new crop yellow pea program in Southeast Saskatchewan (no soybean or corn contaminants). We currently have the option of locking in $13 – 13.50/bu picked up with an act of God depending on delivery timeframe. This program is a good option to get a few bushels per acre on the books while mitigating risk and locking in profitable values. Speak with your merchant on pricing options if you are located outside of this zone.

Flax prices remain unchanged into the new year with bids in the $40.00/bu range picked up still available. New crop prices also still linger at $24-$25.00/bu FOB with an act of God. Production for 2022/2023 in the Black Sea region and the US will have some impact where new crop prices settle in, but for now historically strong values are still attainable. Canadian flax production no longer dictates the market as it did in the past. Demand rationing has taken place and we have done a good job of pricing ourselves out of key destinations. Canadian flax prices would have to drop to satisfactory levels to encourage those exports again. Product going to the US is still steady, but that market has become weaker, possibly suggesting demand is starting to be filled. The price spread between Canadian and Russian flax is quite wide as well – another potentially negative outlook when it comes to local values. While prices are still historically high, the pool of buyers willing to purchase at these levels is running thin. Now may be the time to secure a contract on remaining old crop.

Lentils have been remaining stable following the Christmas break. Buyers seem to have more interest in green lentils now, compared to reds, but this trend was already starting to pop up just prior to the holiday season. Large greens have been trading in the 62 cent/lb range for #2 quality with bids seen at 63-65 cents for X2 and #1 respectively; all including on farm pick up. Small greens have been trading in the 60-cent range for #1 quality with a small amount of #2’s trading this week at 58 cents FOB farm. Reds are still trading in the 45-46 cent range depending on movement timeline. When it comes to new crop, we haven’t seen a lot of buyers offering contracts yet for any color of lentil, but the odd option is available. New crop reds are indicated at 33 cents/lb with an AOG for limited tonnage while new crop large greens have a chance at trading at 38 cents on a #1, 37 on a #2 and 34 on X3. New small greens have been indicated at 35 cents for a #1. With crop production week right around the corner we may see more buyers come to the table with pricing options.

Mustard has started out the new year exactly how 2021 ended. Strong prices. We are seeing some new crop contracting and seed starting to trade already as everybody gets back to work after the much-needed break.  Spot yellow and brown mustard are now both trading at the $1.35/lb to $1.40/lb FOB range. Buyers are looking at any offers closely, so it’s very important to talk to your merchant. Oriental of any variety should continue to trade in the $1.00/lb range FOB farm or better on firm target.  No change in new crop values to start the year; yellow remains in the mid 70’s and new crop brown is bid in the high 60 cent/lb range. Perhaps an offer on brown at 70 cents/lb FOB is a great starting point. These are excellent numbers for 10bu/ac with an act of God included.  Buyers also have strong interest in signing oriental acres up and bids may push into the 70 cent/lb range depending on variety and movement. Seed is still available, which includes delivery to your yard. January, as expected, will be busy on seed, so again be sure to talk to us.

The barley market has perked back up to start the new year with some selling opportunity at $9/bu in some areas again. This does not mean that $9/bu works everywhere as freight differences from say Swift Current vs Carrot River will need to be factored in, but $9 works in a few areas for sure. For growers in the Southeast corner of Saskatchewan we have some buyer interest on some heavy dry product at levels a little over $9/bu picked up on farm, so reach out to your favorite merchant for more details on those deals. New crop malt programs are out and about in the market, and we are hearing numbers around $8/bu delivered to facility as the going rate on 2 row. Old crop malt buyers are looking for samples prior to bidding so feel free to submit a sample if you are looking for a bid!

The holidays have been kind to canola markets as we’ve seen an increase in futures pricing since our last report two weeks ago. Everyone is now trading based off the March futures which currently sit at $1026/MT. Our last report had the March futures a bit lower at $1008/MT. We have had a handful of buyers indicated they’re bought up for any near-term shipping windows, so growers may be inclined to make sales sooner than later if you’re looking for immediate cashflow. Looking out to new crop, November futures are up to $790/MT. This represents a significant jump up from the $757/MT we had seen just before Christmas weekend. Local bids are coming in above $17/bu now in some areas for new crop and is something worth looking into. Old crop pricing has stayed strong due to tight supplies in Canada, strength in European rapeseed futures, and strength in soybeans due to weather concerns in South America.

Well, this cold air traipsing slowly through the Prairies hasn’t cooled off feed wheat prices as $11.50-$12/bu picked up on the farm is trading with the latter being location dependent. Feed pretty much supplants a #1 milling wheat with a 13.5 protein right now with bids at $12.15/bu delivered in. There has been some volatility in this market over the last little bit, but next week’s release of the USDA will allow for more insight to right the ship so to speak. Durum bids have eased a little as buyers are pretty full up for the next 60 days with little movement for quick spot bids. Look to find roughly $21/bu on a #1 CWAD over that time frame. Posting an offer March onward may not be a bad play as buyers will have more appetite. There will need to be some coverage before US crops start to come off.

The focus on chickpea markets has shifted to Mexico and India. Both countries are reporting strong seeding pace and are on track for substantial crops. US demand is still tapering off which has resulted in further softening of the Canadian market. Despite a small blip last week of elevated values (possible short covering of very limited quantity) values today for old crop #2 Kabuli hover around $0.51/lb FOB farm for March-April movement.  New crop has been on the radar with trades ranging from $0.43-$0.45/lb FOB farm with an AOG. There might still be some depth to that bid as it has been few and far between on actual trades.

The soybean market is receiving support based on South American weather forecasts returning to hot and dry projections after rains sent the markets lower last week. Harvest has started in Brazil with all eyes on early yield forecasts from Mato Grosso. Local soybean bids continue to hover in a range of $14.50-$15.00/bu FOB farm. Domestic feed values continue to support Faba bean markets. Feed fabas continue to trade near $13.00/bu FOB farm and #2 export quality is trading $15.00/bu FOB farm. Dry bean market news is focused on Mexico and Argentina. Mexican bean crops appear to have produced above average volumes as local bids have been slipping as of late.

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 – December 22, 2021

Barley prices softened a little this week after pushing back up to $9/bu FOB the week prior. Most bids now lend closer to $8.50/bu picked up on farm, plus or minus, depending on movement window and location of grain. It’s a similar story to previous price slips, a bit too much corn filling spots that would normally be covered by feed barley, but supply is limited so there should continue to be strength in the market. We have seen a few fall bids on barley, with some malt numbers getting tossed out around at $8/bu delivered in for next year, while interest in feed continues around $6/bu. Feed buyers are not looking to get too deep into those bids so if you’re interested, we would need to firm things up. We are not seeing tons of interest on fall delivery barley contracts on the grower or buyer side at this point in time though.

Heading into the holidays, the pea market has shown very little change in pricing. Yellow peas continue to be priced at $18/bu picked up in limited locations with $17 – 17.50/bu more widely seen. Green peas remain at $16/bu delivered, with $16/bu picked up getting hard to come by. Historically, this is still a great price for green peas and shouldn’t be looked at negatively when compared to yellows, as yellows have a domestic demand that greens don’t. Maple pea pricing hasn’t changed from $18 – 19/bu picked up on farm, depending on location and variety. Looking to new crop, yellow peas in Eastern Sask. are currently bid at $13 – 13.50/bu picked up depending on movement timeline. If you aren’t in this area, we recommend trying out a target at these values.

Canary seed has yet to see a change in pricing over the last month or two. Buyers remain at 50 cents picked up as the urgency for demand seems to have quieted. We will have to wait and see if there will be another surge for more supplies in late winter, or if buyers have bought up enough to cover until then, as per reports. New crop values with an act of God are at 35 – 37 cents picked up, depending on location; a great new crop values to get the first 10 bu/acre on the books while hedging against downside risk, if you haven’t already.

‘Twas the week before Christmas, when all through the market, nothing was stirring, not even a target. Flax supplies filled the US with care, and despite our hopes, the EU and China are just not there. Flax bids at $40/bu are snug in the bed, while visions of new crop are dancing at $24-$25/bu in some buyer’s heads. While seed supplies might still have a cap, call Rayglen Commodities instead of settling for an empty tap. Now please remember that when your phone beeps with a clatter, not to worry, as it’s just our alerts to keep you up to date on the matter!

The oat market seems to have dialed back over the past couple days, which does not come as much of a shock given the values that have been quoted over the past couple weeks. Old crop milling oats might still catch a $10.00/bu FOB bid this week, but we don’t expect product will be moving promptly. If you’re looking for quick movement, there might still be some opportunity to make sales, but we suspect the value to be a fair amount lower. New crop has backed off a bit sitting around that $6.00/bu FOB range with the option to rollover into 2023 should you not make quality or quantity. It’s hard to say if we are going to see that $7.00 new crop price come back around as many saw what was out there and got some good amounts on the books. However, locking in some $6.00 new crop is still a great decision to be made. If you are curious on anything over and above these posted prices call in to discuss, and maybe something higher might trade. Don’t leave yourself in the “should’ve, could’ve, would’ve, but didn’t” situation.

Chickpeas continue in hibernation mode as we move through the final weeks of 2021. Talks with both buy and sell sides have hopes of another tender being announced to try and spark life back into that market, but there is little to support that Christmas wish. When looking at 5 year averages, the current value of the market is above the median and in previous years would have been considered a sell point. With the approach of another seeding season and astronomical input costs, these levels do not trigger for growers. If exports remain slow carry will increase and a potential further decline in bids would be the next logical move. Current bids are seen at  $0.62/lb FOB farm for a #2 or better Kabuli with sample grade at $0.40/lb. New crop bids are still a mystery.

Canola futures have had a positive week with small increases in the nearby months. January futures currently sit at $1016/MT, up from $995/MT last week. Most buyers are basing bids off the March futures, which are sitting at $1008/MT, up from $972/MT last week. Strength in soybeans has been contributing to the recent uptick as well as increases in palm oil and European rapeseed prices. Looking out to new crop, November futures are relatively unchanged this week and sit at $757/MT. Some attractive numbers are being shown around the province for new crop and are worth looking at.

Wheat prices continue to hold strength again this week. A #1 hard red spring wheat with a 13.5 protein fetches anywhere from $12.80 – $13/bu delivered in Central Sask. with the latter pricing for a bit further out movement right now. On the feed side, buyer bids range from $11-$11.50 picked up on the farm. Firm pricing remains in place due to tensions between Ukraine and Russia, US Plains dry weather outlook and of course global production being tight. As of the end of last week, roughly 6.3 MMT of wheat was exported from Canada. This is down an average of 23% over the past three years and excludes durum. Speaking of durum, the Algerian tender that was to be squared away yesterday was postponed to today. So, we patiently await the feedback on that. In the meantime, a 1CWAD continues to see traction around $21.50- $22/bu with new crop indications around $13-$13.50/bu on a 3CWAD or better for early movement.

Buyers seem to be on the hunt for old crop Faba beans and soybeans this week. Faba beans are trading at $14.00/bu FOB farm for feed quality, while an export #2 likely catches a bid around $16.00/bu depending on movement timeframe. Soybeans are trading in that $15.00 to $16.00 FOB farm range. Looking to the spring, both the soybean and faba markets could have trouble attracting acres. At this point both commodities do not fair very well against most other commodities for profitability. The new crop price is not the only thing hindering these markets but is also their historical yield performance compared to other commodities. It will be interesting to see where new crop bids emerge for these two commodities in the new year. We will keep you posted if/when we see some programs pop up!

Lentils continue to plug along at last week’s prices. High end large greens (#1/x2) are trading as high as 65 cents/lb delivered while a regular #2 is bid at 62 cents/lb FOB farm. Reds continue to trade at 45-46 cents on farm for movement in the first couple months of the new year. The new crop market is still pretty quiet on both the red and large green front, but buyers are willing to entertain offers. The indicated new crop red price right now is quoted at 30 cents FOB with a September through December delivery window, giving you a ballpark of where to start offering. We’re not really seeing any solid new crop on small or large greens bids this past week; however, buyers are interested in locking up medium green lentils out of the U.S.

Mustard will go into the Christmas and New Year season with strong footing.  We continue to see new crop being signed this week and many conversations are being had about the outstanding numbers being offered for old crop as well.  Spot yellow and brown mustard are now both trading at the $1.35/lb FOB range, or higher, while oriental of any variety should continue to catch the $1.00/lb range FOB farm.  No change in new crop values this week; yellow remains in the mid 70’s and new crop brown is bid in the mid to high 60 cent/lb range. These are excellent starting points for 10bu/ac with an act of God included.  Buyers also have strong interest in signing oriental acres up and bids may push into the 70 cent/lb range depending on variety and movement. As mentioned before, it is critical to call your merchant to get up to date information and come up with a marketing strategy. Seed is still available, which includes delivery to your yard. January could be busy on seed, so be sure to talk to us.

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 – December 15, 2021

Given the current state of the oat market, both old and new crop values should already be stuck in your head, but if not, keep reading! Old crop bids continue to trend around $10.00/bu – $10.50/bu FOB farm for Jan./Feb./March movement on #2 milling quality and while those numbers are outstanding, it seems more focus is put on new crop values today. Production contracts range anywhere from $6.50 – up to $7.00/bu on farm depending on delivery timeframe and location. Although these contracts do not carry an AOG buyers are offering a solution, which is to rollover any shortfall on quantity or quality to the following year! We also have a gluten free oat program that carries a $1/bu premium available. Of course, certain criteria must be hit, but if you think this is something that would interest you, please call in to get the details for this program. We can still get our hands on seed as well, but supply will be limited. If you are straddling the fence, now is the time to hop off and join the party as these values are at record levels and can offer other benefits such as higher coverage for crop insurance when contracts are submitted.

There is not much excitement in the pea market as we inch closer to the holidays. Yellow and green peas have both softened coming into this week as export sales have been much quieter. Yellow peas are trading anywhere from $17 – 18/bu picked up, however, the $18 bids are limited and rely heavily on location with movement being pushed out to spring. There have been reports that China may be accepting Russian peas and if that is the case, this will affect Canadian bids negatively as Russian peas are a cheaper option for China. Green pea bids are down to $16/bu delivered as there seems to be very little buyer interest at the moment. Maple peas continue to trade between $18 – $19/bu picked up. We have had a new crop yellow pea bid pop up at $13 – 13.50/bu picked up with an act of God in Eastern Saskatchewan; for more information or pricing in other areas, call your merchant.

Canary seed prices remain sideways at 50 cents/lb picked up for movement after the new year. The spike in bids seen earlier in the fall have dipped and plateaued, but it is still unknown whether there will be a small rally in the spring. At this point, it looks like it will all depend on buyer coverage and if they have already locked in enough product to cover their sales. While immediate demand has been filled, the market hasn’t collapsed, and these bids are still historically strong. New crop bids are also positive and if you are looking to get some tonnage locked in to reduce risk, call your Rayglen merchant for pricing out of your area. Seed availability is another factor to consider this year as we suspect supply will be limited. Please reach out to us as we are happy to help you source anything you’re looking for.

Flax prices have come off their highs, with bids settling in at $40.00/bu picked up this week. With China and Europe buying cheaper flax from the Black Sea region, North America has made the adjustment to price itself accordingly. US demand was driving Canadian values and for now, that need seems to have been filled. Flax prices from the Black Sea region have been flat since October where Canadian flax is no longer competitive. The market seems to be balanced, but the question still remains: will there be potential for a slight upswing as supplies tighten overseas? Only time can answer that question. New crop bids remain in the $24-$25/bu range FOB farm with an act of God depending on location.

It’s been a down week for the canola market as nearby futures have taken a hit, despite ending stocks remaining very tight in Canada. One of the main reasons for the drop seems to be the expectation of an increase in soy oil stocks in the US, which will keep crush margins at bay. January futures now sit at $995/MT, down from $1006/MT last week. March futures are down to $972/MT, compared to $981/MT last week. The calendar is something to keep in mind as some of this weakness can also be contributed to year end spec fund selling. The reality of this market is that prices still need to remain high to discourage exports and this should keep canola values afloat until we get closer to next year’s crop.

The soy market remains supported by robust domestic crush volumes boosted by US meat processing soymeal consumption. Soy oil demand has also seen a pickup due to rising biodiesel purchases. Local soybean bids continue to hover in a range of $14.50-$15.00/bu FOB farm this week. Faba bean values are propped up by strong domestic feed market and US demand for feed protein. Feed fabas continue to trade near $13.00/bu FOB farm with #2 export quality trading at $15.00/bu FOB farm. Dry bean market news is focused on Mexico and Argentina. Mexican bean crops appear to have produced above average volumes as local bids have been slipping as of late.

Chickpea news wires have been up and down for the last 18 months with a push towards higher prices. That tone has changed. While StatsCan reported a production of 76k MT, the smallest since 2009/10 crop year, export numbers have been down for the last 3 consecutive months and below average. Indian and Turkish market prices continue to decline making Canadian values beyond tradable export levels. The US is still the main support for current levels, but there is no certainty of the longevity of that market. It is increasingly difficult to find a reason for an upward trend on chickpeas and according to one well known opinion, it will require a wreck in order for the markets to see the gains that were expected. Suggestions of selling some inventory at todays levels are becoming more common.

Wheat prices continue to bounce between the proverbial hedges so to speak. This market continues to sway back and forth on news of a large Aussie crop ahead,  coupled with world wheat ending stocks on the down slope and indications that Russia may lessen wheat exports down the road. As well, on a relatively normal and typical seasonal year Minneapolis tends to make up some ground on KC futures. At these levels that could produce new Minnie highs bolstering bids for Canadian producers. That said, this has been anything but a typical year. Feed wheat values are trading around $11- $11.50/bu on dry heavy product. Milling prices delivered into Central Sask. on a #2 with 13.5% pro hover around $12.70/bu range. Durum continues to trade at $21-$21.50/bu delivered in for the new year on a 1CWAD. Buyers are always looking for offers so if you have a firm bid in mind let your merchant know.

Lentil markets remain stable this week with small red bids sitting at 45-46 cents/lb FOB farm in many locations. Buyers have also shown renewed interest for #1/X2 large lentils with indications at 64 cents/lb FOB farm. Number 2 grade large greens have been trading at similar levels as last week with most bids still in the 60 cent FOB farm range. Small green lentils remain in slow trade, but there has been interest from buyers around 60 cents in the right location for good #1 quality. If you still have good quality French Greens in the bin, give us a call as we have a few buyers interested around 90 cents/lb on farm. Bids do vary based on quantity, location, and quality, but generally growers will be able to secure a contract around that 90-cent mark. New crop pricing is still very quiet regarding all lentils with not many buyers posting bids. Rather, buyers are willing to entertain reasonable offers, so if you have a value in mind, it is encouraged to put out a firm target.

After a week of lower bids and end users filling coffers with corn, the barley market perked back up a bit to $9/bu in a few areas around the province. The rebound raises a couple of questions; first, are feed lots still not getting enough corn and second, is barley still leaving the country at too high of a rate to leave anything in the bin for spring and summer? Movement window seems to be a bigger concern this time of year as fertilizer payments creep into the forefront of grower’s minds. Due to the corn shipments space is limited for many buyers, which means delivery is getting pushed into March in many cases. This problem is not likely to lessen as we move further into January, so if cashflow will be a concern in 2 months’ time, then you need to act now. Malt buyers have been quieter this week with chatter of bids a little north of $10/bu getting tossed around. Demand for malt barley remains meek from what we gather. We did have a small bit of interest in fall feed barley contracts around $6/bu FOB farm, but we know new crop barley is a bit of a swear word for many growers this past year, so just take it as a bit of news.

Mustard continues on a strong path this week. New crop trades, along with seed, have been hitting the books at a faster pace recently. These numbers pencil in very strong on the new crop side with an act of God and we are encouraging growers to take 10bu/ac off the table. Spot yellow and brown mustard are now both trading at $1.30/lb FOB range, or higher, while oriental of any variety should catch the $1.00/lb range FOB farm.  New crop values for yellow are in the mid 70’s and new crop brown is bid in the mid to high 60 cent/lb range. Oriental is in high demand for new crop also, but bids are tough to find. Buyers are beginning to rely more on grower offers to get new crop oriental secured.  If you have a value in mind, now is your chance to offer it up! It is critical to call your merchant and get up to date information and come up with a marketing strategy on both old and new crop. Again, we still have seed available, which includes delivery to your yard. We are not on short supply yet, but if this pace continues things could get tight.

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 – December 8, 2021

Barley had a tough week as pricing pulls back in all areas. Corn is being brought up from the United States at considerably cheaper values, which our buyers suggest is now heavily affecting barley bids. This shouldn’t come as much of a surprise to most as anticipation of this event has been lingering over the market for a few months. Not all is lost though, as bids remain historically strong, now ranging from $8.25 – 9.00/bu picked up on farm, the latter of which is indicated for Southeast Saskatchewan. There are still a few active bids available for January – March movement, however, we now see some buyers push delivery windows to an April – June timeline. As long as corn keeps getting brought up, we can expect barley prices to remain bearish. If you’re looking for new crop bids, call your merchant with location and we can find a picked-up price.

The chickpea market continues to be a topic of “non discussion” these days. Demand remains slow and it seems neither buyers nor sellers are willing to budge off their desired purchase/sales targets. There remains some pricing interest for large Kabulis around the $0.55/lb FOB mark, but bids are starting to push into Jan.-March delivery time frames. Buyers continue to look for decent sized product at these values with discounts for over 10% 7mm sizes. New crop bids remain slow, but we have seen offers trigger at $0.35/lb FOB farm with a 10/bu to the acre AOG attached. StatsCan came out with a drop in chickpea production, however not we are not overly convinced that this number is a shocker to anyone in the chickpea game. Targets are the way to go it seems, as there may be sporadic trading taking place and if you have a sales value in mind, we suggest being in front of the market rather than behind.

The flax market has backed off a little on price the past couple weeks as buyer interest has waned. Not to say that sellers are still overly aggressive either; it’s been a pretty passive market as of late. We still have a few trades being done in the low $40’s range this week depending on movement window, but there are bids sub $40/bu as well. Trying to predict what the market is going to do is difficult; on one hand we have very tight supply in North America, but on the other hand we see China and Europe continuing to purchase at lower values from the FSU, which has our product priced out of the market. So, expecting that our bids will go back up from these already crazy high levels is a tough road to walk when other parts of the world are selling cheaper. That said, limited supply still hangs over the market, so who knows what may develop in the future. Regardless, bids are at great values and making a sale to take one issue off your plate is not a bad idea at these levels. New crop values are still very attractive at $24/bu picked up on farm with an act of God, which offers protection against drought problems, unlike other crops without that assurance.

Canary seed values are sideways again this week with bids stagnant in the 50-cent range picked up on farm. Some analysts are concerned about 2022 canary seed yields after a drought year, as history shows that soil moisture takes some time to recover. This could translate into yield projections being on the conservative side of things. Currently, new crop bids are hit and miss at 35 cents/lb picked up, with an act of God. Exports from Argentina are ahead of last year’s pace with their 2021 crop recorded as over double from last year. With North American canary and millet prices both off from the harvest highs, it’s no surprise that the short-term demand has been filled. There could be a seasonal bump after the new year for spring shipments.

Both milling and feed wheat markets remain well supported due to tighter available supplies and thus increased buyer competitiveness. Feed wheat is somewhat moderated by the import of US corn destined for intensive livestock production. The global wheat story remains rather unchanged; too wet in Australia, a little too dry in the U.S. Plains and Canada, struggles with production and now shipping issues along with export taxes in Russia. Feed wheat values are trading near $11.00/bu – $11.30/bu picked up on farm, location dependent. Milling wheat values are quoted at $12.60/bu FOB farm on for #1-13.5% protein product. 2021 Canadian durum production is between 40%-50% of the previous 5-year average. Most of the durum production will flow to North American domestic mills. Durum bids have been holding firm around $21 -$22/bu delivered.

Dry Bean exports out of Canada have been steadily on the incline to Europe since mid-2018 partly due to tariffs on the US, which will soon be coming to an end. Exports for the year thus far have been in line with previous years but could move to a reduced number as a result of lifted tariffs. The Brazil crop is reported as fair, which could mean another bear for Canadian and US supply. Faba beans out of Australia are reporting a slight increase in production of 2% and while this may seem insignificant, it is still a new record and will weight on global markets. Despite beans being at elevated levels, the movement out of North American markets is slow. A push for export demand is what will keep these values strong, so all eyes are on Australian and Latin America’s production for quality and quantity.

Very little change this week in lentil markets as StatsCan’s drop in production numbers across all types of lentils was widely expected by the industry. Red lentil pricing in Australia has seen a small uptick, which is starting to have more importers looking back to Canadian origin. While this renewed interest hasn’t been enough to increase our prices, it is something to keep an eye on moving forward. Red lentils are trading today at $0.45/lb FOB farm for #2 quality. The large green lentil market took a small step backwards from some shallow demand we were seeing last week but is holding on between $0.61-$0.62/lb FOB farm for #2 quality with movement in the new year. Small greens are trading sideways at $0.60/lb FOB farm for a #1. New crop bids have started to slowly show up over the past couple weeks as well. Large greens are around $0.40/lb FOB farm and red lentils are between $0.32-$0.33/lb FOB farm. These contracts include an AOG on the first 10 bu/acre. If you have price target in mind for old or new crop, don’t hesitate to let your merchant know so we can get a firm offer out to our buyers.

Mustard continues to lead the pack of Canadian grain markets. Yellow and brown are the top dollar catchers with oriental following only slightly behind. Yellow and brown mustard are now both trading at $1.25/lb FOB, or higher, while oriental of any variety should catch $1.00/lb FOB farm.  The mustard market is on an incredible run all around, but inhouse documentation shows yellow mustard bids, in particular, have tripled since June and the average trade since September pencils out to about 91 cents/lb. Growers should also note the 4-year average is 42 cents/lb; that puts todays current bid of $1.25/lb, at minimum, 83 cents/lb higher than the 4-year average. New crop continues to trade at historical values as well, with bids in the mid 60 cent range for brown, 70 cent range for yellow and 60 cent range for oriental. This puts new crop values at 1.5 to 1.7 times higher than the four-year average.  At these levels it may be a good time to look at growing mustard for the upcoming season and taking advantage of the outstanding new crop values.

The oat market has developed into quite an interesting story. On a percentage basis, oats are the highest gaining commodity in the world, even surpassing the metal Palladium. Quite remarkably, oat futures have also outperformed every major stock market index. Today, the highest spot values remain at $10.00/bu FOB farm for Jan.-Feb.-March movement on a #2 milling quality.  Perhaps more important is the discussion around new crop bids. Taking some time to pencil out oat returns on a new crop program and consequently some truly outstanding crop insurance benefits is important this year. Please call your merchant as prices are being quoted in the $7.00/bu FOB range. These contracts are without an act of God, but some buyers have agreed to rollover any short fall in tonnage to the following year. At current pricing levels, sales on both old and new crop have risen to one of the top returning cereal crops. We may have some seed options left, so please touch base with us on that also.

StatsCan’s satellite imagery prediction from September (12.78MMT) seems to have been fairly close from the reported numbers of 12.59MMT of total production of canola. However, this glaringly low number rivals that of the production levels back in 2007. We continue to see pricing fluctuate as of late due to the strong Canadian dollar as well as the USA’s EPA liquidating some long positions. As of writing, January futures are sitting at $1006/MT up from $986/MT last week with March futures at $981/MT up $21/MT from the previous week. Flipping over to new crop, Nov ‘22 futures sit at $772/MT.

The “two peas in a pod” quote can be used to describe the current pea market as it remains much the same as last week. Yellow peas continue to be bid around $17.00 – $18.00/bu FOB farm depending on area and delivery window. Green peas remain in light trade with bids floating between $16.00 – $16.50/bu FOB. Maple peas are flat lined around $18.50-19.00/bu FOB farm with many growers still targeting the highs of $20/bu seen earlier in the year. Although actual trade seems to have backed off a bit, these are still great historical values for peas of all kinds and growers are encouraged to take advantage. Not much talk about on the new crop side of peas this week except for yellows, where growers may be able to obtain a $13.00/bu FOB farm contract including an act of God for 10-20bu/ac. As far as green and maple peas go, we suggest using a firm offer if you have a target in mind. As is true with many commodities this year, buyers may not be interested in securing as many acres due to the perceived high values. Playing the “wait and see” game may not be successful!

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 – December 1, 2021

Despite last weeks trend upward in Canola futures, this week is seeing a bit of a shakeup. There was little explanation as to why markets took a downturn, but it looks like we can attribute the slide to the Omicron variant of Covid-19 and speculative traders selling positions as a response. Where futures typically move in nickels and dimes per bushel, this shift was near $1/bu on a downward slope. January futures are sitting at $986/MT, down from $1026/MT last week and March at $960/MT versus $998/MT last week. Soybean and Soyoil futures were not left unscathed but have already started to see a recovery. Traditional Ag trade believes there is a rebound coming and is maintaining the “hold” mentality.

Lentil markets have seen a bit of an uptick since previous weeks. There is a shallow market for #2 large green lentils, around $0.63/lb FOB farm, but tonnage is limited so if this is a selling point, we would suggest making a move before demand is filled and the price slides off again. Small green lentils are hovering around $0.60/lb for #1 quality, but in the same scenario as large greens; demand doesn’t seem deep at these levels. Red lentils have gained a bit of life as well and growers can once again obtain $0.45/lb FOB farm for a Jan.-Feb. delivery timeframe. Reports out of Australia suggest that rain is delaying harvest, however it appears to only be a small percentage of the country that is affected. Australian crop is likely to swing red lentil bids the most, so growers may want to consider making sales on what is expected to be a short-term bump. StatsCan will be releasing their report this Friday and we suspect total tonnage to be lower than first estimated. The question remains if this is going to impact any future pricing or not. On the new crop side of things posted bids on large greens show $0.365/lb FOB farm with AOG, while reds have seen some trades at $0.35/lb on firm target. If you have a sell price in mind for new crop lentils of any variety, we suggest calling in and posting a firm target. Given the historically higher values for new crop, buyers may be hesitant to purchase as much as they have in previous years. They may instead opt to secure just enough to cover early shipping needs and hold out to see what the rest of the growing season brings. Consider taking some risk off the table for the 2022/2023 season.

Old crop barley is still priced historically high this week, despite corn futures taking quite a hit. Bids remain supported at $8.75-$9.50/bu picked up with the latter of those values quoted as April-June shipment in most cases. Grower in Southeast Saskatchewan may have a shot at $9.50/bu picked up for quicker movement, but the barley needs to be of “premium” feed quality, 50lbs+ and max 13.5% moisture. New crop bids are still hanging on around $5.50/bu picked up without an act of God. Growers are encouraged to target values slightly higher. Although we can’t guarantee a trade above the quoted $5.50/bu, it seems this market may have some wiggle room. We do have a supply of certified seed if you are looking to replenish supply or get into a new variety. Call your merchant on available varieties, pricing, and options for shipping to your yard.

The mustard market has been a real beast of late and the numbers we are seeing for both spot and new crop are at unbelievable levels, which leaves us wondering if we will ever see these types of values again. The old saying of what goes up must come down is the biggest push to move product in the bin right now. We understand that the waiting game seems to be paying off, but all good things eventually do come to an end and current bids cannot be ignored. Don’t be the last one at the dance with no partner when the music stops on this one. You can sell Brown or Yellow mustard at spot prices of $1.25/lb or better picked up on farm and Oriental at 92 cents/lb or better, picked up with no varietal premium/discount like we often see on Oriental. New crop contracts are pretty shiny and bright as well as you can sell the first 10 bushels of production, including an act of God, at 60, 65 & 70 cents on oriental, brown, and yellow respectively. Locking new crop with an act of God is one of the best ways to shift some of the marketing risk off your plate.  Having that act of God protection in case of low or no production, alleviates the need for a buyout in a drought.

Another week has come and gone with little change in the chickpea market. Eyes are turning their attention to the December 3rd StatsCan production report to see if it will match expectations of lower production across many commodities. Reports out of Mexico are showing a quick pace to start chickpea seeding that could result in more acres this year. Local bids remain in the 55 cents/lb FOB farm range for #2 large kabuli’s with max 10% 7 mm sizing requirements. Some new crop bids are available at 45 cents/lb FOB farm with an AOG on 10 bu/acre. If you’re looking for any chickpea seed, we always have options for you.

Pea prices continue to hold par from last week. Yellow peas continue to trade between $17-$18/bu depending on farm location and movement, with top end bids a bit more elusive. New crop values on yellows sit at $12.50-$13/bu FOB farm with an AOG. Green peas maintain their ho hum attitude with $16/bu trading. You may be able to push green pea bids half a dollar more right now, but with movement 4-6 months down the road. The maple market continues to be relatively quiet with a few trades here and there. Pricing seems to be hovering at $18-$19/bu. Every now and then a buyer may shake lose looking for some product at values a little above market so having an active firm offer out never hurts. Thanks to solid pet food sales and protein fractionation pricing support has remained firm. Consider only a year or two ago the majority of Canadian peas were destined for China, quite a different story this year. Having a few other avenues to move product has definitely helped out this year.

The canary seed market still hanging out at historical highs. That said, these prices have resulted in some end-use demand destruction and more affordable product substitution. So, for now, the canary market is blinking twice and pausing to assess its next steps. Statistical organizations continue to assess and reassess 2021 production levels, with a recent leaning towards taking production levels lower. Available supply is always a bit of an educated guess as it’s not uncommon this year for 15–20-year-old stored product to be marketed. Bids at 50¢/lb delivered are still available for nearby shipping and frankly who can criticize a sale made in this high-priced environment.

Oats markets are smoking hot this week, with the highest values trading at $10.00/bu FOB farm for January through March movement on a #2 milling quality. To put that in perspective, $10/bu is roughly triple the 5-year average for a #2 milling oat. The price has doubled since August 5, 2021, as short supply continues to plague the market. Oats seem to be following other crops that belong to the value-added markets which are also seeing large increases in pricing. New crop bids have started to pop up and are quoted in the $6.00/bu FOB range, which is just under double the 4-year average. Thus far, contracts aren’t being quoted with an act of God. At current pricing levels, sales on both old and new crop have oats poised to be one of, if not the best, returning cereal crops. If you have oats in the bins give us a call to discuss pricing options.

Pins and needles await those interested in the StatsCan results of the 2021 dry bean crop here at home. The picture will be painted in due time, but until then, who wants to gamble on both yield and acres? Drought and thus yield issues in the Prairies mixed with a solid yield, but lack of seeded acres in Ontario proves to be a bit of a gambit for the prognosticators right now. This is the most excitement this market has seen in a while as bids have been quite quiet on soybeans, sitting at $14.50- $15/bu picked up on the farm. As we look at faba beans, feed prices continue to fetch a fair penny at $13/bu picked up with #2 export quality ranging around $15/bu.

Flax prices continue to soften off the record highs, now with bids ranging in the $40 to $42 area. Bids are getting harder to come by it seems at these levels without movement being pushed way out into the spring. So, best to talk with your merchant and come up with a strategy to market what you have left. New crop brown flax values still could likely be obtained in the $24 FOB range with an act of God. Again, we hear reports of Russia selling into the market as competition on the world front. Lots of our price premium is being sold into markets in North America. If you need flax seed, we still might have some left in certain areas, so talk to us and see what’s left.

Spring wheat futures took a step back this week, with most markets significantly down on Tuesday. Despite the futures drop, bids are staying relatively strong for #1 CWRS with 13.5% protein around the $12.75/bu delivered into plant mark. Feed wheat markets are sideways at $11-$11.25/bu FOB farm for heavy and dry product. Durum bids have stayed strong with bids for #1 CWAD as high as $21/bu delivered to plant for a deferred movement. We have options for all qualities of durum as well so let us know your specs. New crop bids for September-December movement on durum in SE Saskatchewan are as high as $13.50 FOB farm.

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 – November 24, 2021

Whether it’s feed or milling, wheat markets continue to hold strong this week. Feed values are still hovering around that $11.00 – $11.50/bu FOB farm mark depending on location, quality, and delivery time frame, with steady demand. On the milling side, a #1, 13.5% protein Red Spring is poised to capture $12.50/bu delivered plant in Central Sask. Durum values remain a bit of a rollercoaster ride, similar to what we’ve been seeing since harvest time as wide spreads in value are found from buyer to buyer. Top end bids currently sit around $20.00 – $21.50/bu pending quality and shipment window. Recent reports suggest the possibility of active tenders, but so far, nothing has traded yet. We will keep an eye out for something to shake through as this will help to determine #1 CWAD and lower grade bids. New crop values for durum are still indicated at $13.00 – $13.50/bu in SE Sask. for September – October delivery. The bid doesn’t seem to be very deep, so if you’re on the fence, it may be time to make some sales. Historically these are some great values to lock in.

The flax price rally has scaled back from where it was a week ago, now with $42.00/bu FOB farm Jan. – March being quoted as an average bid. Even more worrisome is the fact that current values have started to feel heavy with the few buyers left willing to purchase and we could see another drop. For those in Eastern Saskatchewan, there is potential for higher bids, but growers should expect summer movement. Chinese imports in October totalled 13,000 tonnes with Canada only accounting for 700 tonnes of that, with the remaining coming from Russia. Current flax values only work for the US market and once that market fills the demand, we could see bids settle down to match the global markets. New crop brown flax values still linger in the $24-$25/bu FOB range with an act of God.

There was a bit of a pull back in the yellow pea market at the start of the week and now finding bids at $18/bu FOB farm is getting tough. As we write, most buyers are posting values closer to $17-17.50/bu picked up with the exception of NW Sask. where there is still a chance to hit the highs. The US market was holding up our local yellow pea values, but with reports of demand being filled, we start to see a slowdown and suspect yellow pea bids will stall out for now. That said, there remains the potential for bids to pull back further if steady farmer selling continues. Green peas had no change this week yet with $16/bu still available, while maple peas also remain steady at $18 – 19/bu depending on variety and location. We still have new crop opportunities on yellow peas at $13/bu picked up with an act of God, which is a great price to secure a few bushels per acre. New crop programs have been slow to start for greens and maples, but if you have a target price in mind let your merchant know and we can set up a firm offer.

Oats prices are still very strong this week with bids ranging around $9.50/bu picked up on farm. Freight considerations will bring that value down a little in some areas as trucks don’t run for free, but the bids are still un-be-lieve-a-ble. Milling market options for off grade oats are available and it’s the kind of year that even varieties traditionally not considered for the milling market may make the cut, so be sure to explore all options. Fall oat bids on 2022 seeded land are indicating $6/bu on farm, or better, which pencils out as the #1 cereal option based on our current crop ratings. The years are few and far between that oats are the best cereal option and considering the current values on everything else, it’s truly saying something. Oats are not just the best of the bad options for this coming year, they are a money maker.

Canary seed prices are stagnant this week as buyers are not aggressively looking for product and sellers are in no rush to sell into a sideways market. Current bids are showing 50-51 cents/lb on farm; values that are about double what we normally view as “good” on canary. Supplies are tight for sure, but canary seed markets can dry up without notice and product can become very tough to move, so while expecting prices might yet creep up, just ripping off the band-aid, selling it all and forgetting about it is not a bad play either. Keep in mind, current bids are double what they normally say is a good selling point on canary. New crop values on canary are still showing some buyer interest around 35 cents/lb picked up on farm including an act of God that covers losses due to drought. Consider new crop canary as a solid option to take some of 2022’s marketing risk off the plate today and lock something in.

Canola futures are up once again this week, which is no big surprise as they have seen significant strength for multiple weeks in a row now. January futures are sitting at $1026/MT, up from $1006/MT last week. March futures, which some buyers are now trading off, are up to $998/MT which is better than last week when they were $990/MT. A rally in soybean and soy oil futures earlier in the week gave some support to canola, despite palm oil taking a step back. Weakness in the Canadian dollar also helped, making canola relatively cheaper to import for foreign buyers. Taking a look ahead, November 2022 futures have taken a step back and sit at $815/MT. This works out to over $17 for new crop bids in most areas.

Adjustments are expected in StatsCan’s report of chickpea production next week. It is believed the current stats are too high with the lower yields and less acres in 2021. Mexico is well into their seeding and ahead of schedule for a typical year. With prices up 50% from last year Mexican producers are inclined to increase acres. Across the pond, India experienced heavier than usual rainfall which meant a later start to their seeding. The rainfall benefits supersede any late start by far. Prices remain flat for another week with #2 Kabuli’s bid at $0.55/lb FOB farm Jan.-Mar. and sample grade quality around $0.45/lb. New crop contracts have been popping up @ $0.35/lb FOB farm Sept.-Dec. with an AOG. If you need seed, give us a call!

Barley markets have been maintaining strength week after week. Old crop has been trading at $9-9.50/bu with freight sensitivity and new crop rumbling are around $5.50/bu FOB farm without an AOG. Corn is still a possible replacement for barley, but so far has only slowed the potential on value uptick. It seems there is still product in the bins as these values keep inching upwards, but the bulk of production has likely been traded. If we run into a cold winter and supply is weak, there could be more record-breaking values in the future.

The large green lentil market seems to be “waking up” over the last couple days. We have seen #1 quality large greens trade at 64 cents/lb FOB farm on offer this week, while #2 quality is now indicated at 60 cent/lb FOB farm, or possibly higher on firm target. The red lentil market continues to be stale without much change seen this week. It is getting tougher to find 45-cent bids, but opportunities to move small tonnage do exist pending location. India seems to be covering their needs with the Russian crop, as they await the upcoming Australian harvest. Next week StatsCan’s final production estimate will be released, it is believed that this number will be slightly lower than the September estimate. The report will likely will not affect reds as much as green lentils, as there are other sources available to purchase reds but less supply of the greens. The report gets released next Friday so markets may not react to the news until the following week.

Soybeans are taking their lead from other grains this week. With 95% of US harvest complete, harvest delivery pressure is starting to subside. The industry is now focused on any news coming out of South America, where record-breaking production is anticipated. Local bids have been as high as $14.50/bu to $15.00/bu FOB, pending farm location. Feed fabas continue to trade near $13.00/bu FOB farm with #2 export quality trading at $15.00/bu FOB farm. Dry bean carryover inventory continues to weigh over grower bids, but with that said, inventories remain in firm hands.

Defying the odds, mustard actually seems to have gained strength again this past week. We know it seems a bit wild, and one likes to think this rise will continue, but everything has a top…right? Where are we going from here? That’s hard to predict, especially in unseen, record territory like this, but one has to think we’re close to finding the top. We are now seeing spot yellow mustard bid at the $1.25/lb level FOB farm, with buyers also looking at brown mustard at $1.25. Oriental continues strong and would likely trade around the 90 cents to $1.00/lb mark for Forge or Vulcan type, with some buyers even willing to entertain Cutlass variety at these levels. We are now seeing new crop acres being booked and grower targets rolling in with buyers willing to entertain at all reasonable offers. The 70-cent FOB farm mark for yellow mustard is being quoted with about a 5-cent discount for brown and likely a 10-cent discount for oriental. These prices look outstanding and include an act of God. We are also seeing an increase in seed bookings this week, so be sure to call your merchant on all types of mustard. We offer treated & untreated options along with free delivery to your door.

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 – November 17, 2021

Yellow pea bids are still holding strong this week, but with US markets pulling back a bit, we could see a ceiling created for Canadian values. China and the US are currently the main importers of yellows, so there may be some downside potential as markets waiver and buyers show decent coverage for the time being. Green pea bids haven’t seen much change for a while as demand remains status quo, but more buying interest may be starting to shape up for later in the 2021/2022 crop year. Reports suggest India’s pea plantings, although at an early stage, are already outpacing the 5-year average due to favorable weather conditions. It remains uncertain if this will translate into increased acres, but the possibility is there. Current Canadian FOB farm bids remain the same as last week. Yellow peas are indicated at $18/bu in many areas, greens are priced at $16-16.50/bu and maples have seen trades hit $19/bu depending on location and variety. Buyers are also still showing some interest in new crop yellow peas; call your merchant if you have a target price in mind.

Minimal changes are seen in the wheat world this week as milling values remain supported and we continue to see a strong push for feed product. Feed trades are happening at the $11.00/bu FOB farm range in most areas for heavy and dry product. On the milling side of things, a #1, 13.5% protein or higher indication floats around $12.48/bu delivered central Sask today with delivery starting to push into the new year however. On the durum side of the market prices remain strong ranging from $20.00 – $22.00/bu for grades ranging from a #3 up to a #1. If interested in these prices, one would highly suggest calling in and talking to a Rayglen merchant as recent programs on durum seem to fill rather quick. Once the buyers obtain their desired tonnage; the bids slide off again so don’t miss the window!

Canola futures have been up and down this week, but January futures broke through the $1000 mark at time of writing, currently sitting at $1006/MT, an increase from $995/MT last week. Some buyers have already started to base their bids on the March futures which are also up this week to $990/MT. This puts local bids in the range of $22-$23/bushel depending on basis levels. With soy and palm oil markets showing strength, some weakness in canola futures may coming from expected shipping issues due to rail lines and roads being washed out in the recent BC storms. Despite this recent news, the outlook continues to be strong for canola moving forward.

The oats market has run sideways this week as $9/bu bids, or even slight better, stick around for #2 quality. If your quality is not quite up to snuff for a #2, it’s an easily obstacle to clear as bids for lower grade oats are still at very reasonable levels. So, get a good handle on what you have and take advantage while these all-time prices are available. Fall prices for next year’s oat crop are showing bids at $6/bu picked up on farm or better in some areas. New crop oat prices don’t carry an act of God clause protecting against production shortages, so the risk is higher than locking in crops like mustard, flax, or lentils where there is protection against shortfalls due to circumstances out of your control. At least these strong prices lend to the belief that this oats market may have turned a corner against the lower price’s that carried on at for quite some time. Hopefully the health food craze of oat milk is here to stay!

Lentil bids remain relatively unchanged from last week, but now concerns over possible shipping delays due to flooding and rail disasters in British Columbia creep into mind. Red lentils continue to trade in the 44-45 cent/lb delivered range for Jan-Mar movement, with buyers content to trickle product in and unwilling to chase sales. Green lentils experienced a small, but welcomed, increase in demand this week as we see a few more buyers asking about small and large greens. Large green bids are indicated as high as 63-64 cents/lb delivered plant for #1 quality, while #2’s are bid at 58-60 cents/lb delivered. As mentioned, more interest is seen from the buy side in small greens, with #1 quality trading at 60 cents/lb FOB farm in many areas. Lentil markets continue to trade hand to mouth with most buyers searching for limited tonnage. Take advantage of these opportunities when they pop up.

The barley market continues to plug along this week with little change. Movement, for the most part, is getting pushed into the new year, but values remain historically strong for both feed and malt. Southeast Saskatchewan feed barley continues to see the strongest bids for “premium” quality compared to the rest of the province, with one buyer looking for product at 50lbs and max 13.5% moisture. Growers with these specs can expect to capture bids in the $9.25/bu range FOB farm for Jan-Mar movement. “Regular” feed barley is trading anywhere from the low $8.00 range to as high as $8.75 in the right area. Malt barley continues to show strong values as well, trading between $10.00 – $11.00/bu FOB farm, pending freight costs, quality and quantity. We have buyers willing to purchase off spec malt as well, so be sure to have your grade sheets ready.

Soybean market buoys on hopefulness from the virtual meeting between U.S. President Biden and Chinese President Xi Jinping. Domestic US demand and edible oil global demand are also bolstering soybean market confidence. Local bids have been as high as $14.50 to $15.00 FOB farm, location dependent. Feed fabas continue to trade near $13.00/bu FOB farm, with #2 export quality trading $15.00/bu FOB farm. Dry bean carryover inventory continues to weigh over grower bids, but with that said, inventories remain in firm hands.

Canadian chickpea values are losing a little steam as recent US domestic trade volume begins to fill. Export buyers continue to indicate buying reluctance at current Canadian values. Around the globe, the next kabuli harvest will occur in Mexico and India. Mexico is set to begin in March sometime and India some time in Apr/May. Mexican acres are thought to be down and there is some indication that Indian acres may increase based on higher local values. Today, #2 OB large kabuli chickpeas are currently trading near $0.55-0.56/lb picked up, while sample grade is indicated at $0.47 to $0.48/lb picked up.

Flax prices are a mixed bag this week and while bids are holding strong for new year shipment, the pool of buyers willing to pay top end values is dwindling. The rally in flax prices seems to have slowed and with sideways pricing the last couple of weeks, it’s time look at what’s left in your bins. New crop values this week still linger between $24-$25/bu picked up with an act of God. Yellow flax also remains strong with bids seen on old and new crop catered to variety. Call your Rayglen merchant to discuss pricing options. The strongest demand for flax has been coming out of the US, however, the volume of demand is getting thinner and once the US is satisfied with their volume, business will have to shift. Exports to China have been limited as Canadian values are too high. Analysts still question whether Canada is pricing themselves out of other global markets such as China and the EU.

There is not much different to talk about this week on the mustard front. Everybody in the mustard world knows what’s happening and record prices continue to trade. We are now seeing yellow bid at the $1.20/lb level FOB farm, with buyers also willing to entertain brown mustard at similar values. Oriental continues strong and would likely trade around the 80-85 cent mark for Forge or Vulcan type, with some buyers even willing to entertain Cutlass variety at those levels. We are now seeing new crop acres being booked and grower targets rolling in with buyers looking at all reasonable offers. These prices look outstanding and include an act of God. Please be aware of the seed situation as it is critical to find a pure supply. Talk to us about all types of mustard seed delivered to your yard as we have been delivering product to farm for years and make it as easy as possible for you.

The canaryseed market remains unchanged this week as buyers and sellers are in a “standoff” situation and neither are budging. Growers continue to hold out for higher values, similar to the ones seen earlier in the year, while buyers are content bidding $0.49-$0.50/lb FOB farm whether they buy or not. New crop bids are still quoted around $0.35/lb FOB farm or $0.36/lb delivered plant today. Trade remains slow, but acres are being booked, so if you’re on the fence, now may be the time to lock in 10bpa with an act of God at these historically strong values before buyers cover their needs. As always, firm targets are a great way to show the market what you have available. Targets have and continue to be an effective marketing tool over the past few months.

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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