Pea market values have softened across all varieties again this week. Old crop yellow peas have pulled back to $10.00/bu delivered, while $9.50/bu FOB farm green pea bids are tough to find with most buyers now quoting $9.00/bu. Maple peas still have an option or two at $10.00/bu picked up, but buyers are limited. For new crop, bids picked up on farm with an act of God are as follows: yellows are bid at $8.50 – 9.00/bu, greens at $9.00/bu and maples at $9.50 – 10.00/bu (variety dependent). If you still have some yellow peas on farm, we recommend moving them into the market as many buyers are willing to wait for cheaper new crop product in fall. At this point it’s still looking like China will come back with heavy demand for the 2021-2022 marketing year and if dryness remains a threat then we can expect prices to remain strong. It also looks hopeful that the green pea market will pick back up this coming marketing year.
The forecast for seeded flax acres in Canada project an increase of 18% according to some analysts, while the USDA report, last week, estimated a 31% increase for our neighbours to the south. There hasn’t been a lot of export activity in the past weeks, and with limited availability left in the bins, prices are starting to come off their highs. For those with any flax left, call us for pricing and movement options as we still have a few buyers willing to pay up. New crop flax is still holding onto its highs of $16-$16.50/bu picked up with an act of God this week, although the number of buyers willing to purchase is shrinking. Looking ahead, the size of the 2021/22 Chinese flax crop will be a major factor. If Chinese production increases, flax from other countries will have a harder time finding a home. If we get some favorable weather, we may see these new crop prices slip as well.
The barley market once again holds strong with little to no change this week. Feed values continue to hit highs of around $6.00/bu FOB farm for old crop and anywhere between $4.00 – $5.00/bu FOB farm for new crop. It remains tricky to find malt values, but given current feed pricing, most producers are exploring feed markets for anything sitting in the bin and/or future production. As previously mentioned, we suggest getting some of these high price feed values on the books; 10-25% of the farm is a good starting number. If there ends up being a drought, the assumption is that you should still be able to hit this target and at least you have some guaranteed cash flow in the fall. On the other side of things, if we end up with good moisture and pull off an average to above average crop, it is likely values will waiver and you’ve locked in some of the highest numbers for the year. Given the upswing in projected seeded barley acres, planning to grow and then search for a price come harvest may result in delivery periods being pushed out further than hoped and/or anticipated. Barley continues to pencil in as one of the top return-on-investment crops at current new crop values. For any further information regarding pricing on new crop, old crop or seed call a Rayglen merchant today.
This week has seen fairly stable mustard pricing, but the offer system here at Rayglen has triggered higher values for later movement! Advertised spot pricing sits at $0.38-$0.39/lb on #1 brown mustard, $0.41-$0.42/lb on #1 yellow and $0.32-$0.34/lb on #1 oriental depending on variety. Oriental still carries the premium on Forge type over Cutlass, although the gap appears to have narrowed. Movement can be as short as April and as long as July on some contracts, so talk to your merchant for options that meet your needs. Bin space and cash flow are always factors involved and we have options to satisfy both. Strong new crop prices are currently trading for 10bu/ac with an act of God. It’s important to talk to your merchant this week about options for new crop pricing. If you are stuck for seed, last minute options may be available for all types of mustard, and possibly still delivered to your yard if you live in Saskatchewan. Call us anytime.
Milling wheat prices have slipped a little bit this week. CWRS milling bids pulled back a touch to $7.20 to $7.45/bu for April-Aug. delivery basis #1 with 12.5% protein. For #1 product with 13.5% protein, bids sit in the $7.40 to $7.65/bu range for the same time period. The new crop durum market has had some more action lately with product trading between $8.25 to $8.50/bu FOB farm in the southeast part of Saskatchewan. Old crop durum bids sit at $8.50 to $9.00/bu delivered to plant in many areas. The feed wheat market has seen a slight pull back over the past couple weeks but is still posting very strong values. Recent trades are taking place at $6.75 to $7.70/bu FOB farm pending location. Highest bids are seen in Western SK and Eastern AB. We still see some producers selling decent quality wheat with low protein (or other discounting specs) into feed markets and penciling out better than elevator bids after discounts. Consider these factors before shipping your product!
Soybean futures have returned to last week’s pre-report levels. Market drivers are comprised of a basket of global events all contributing to sensitive global supplies. Brazil’s soybean harvest is approaching 80% complete. Brazilian production estimates exceed last year despite weather issues. US planting delays are expected with heavy rains being forecasted for the US Heartland. 2021 global soybean supply is forecast to remain tight, largely predicated on strong Chinese demand. Local soybean bids continue to hover around $16.00/bu picked up depending on location. The Faba bean market continues to have decent demand for higher quality grades with #2 Faba bids in the range of $9.00/bu FOB farm, location dependent. Dry bean market prices remain well supported, coupled with healthy export numbers. New crop dry bean acres are forecast to decrease both north and south of the border.
Canola futures are trading up again today after a week of solid gains. These gains come on the back of last weeks USDA report estimating less than expected acreage for corn and soybeans. May futures are at $793/MT, up big time from last week when they were $757/MT. July futures currently sit at $735/MT, also up from last week when they were $715/MT. Local basis levels remain strong in many areas as unsold canola stock on farm continues to tighten. While new crop futures aren’t seeing as big of a spike as the nearby futures, they are still up from last week with November sitting at $629/MT. With these strong values, one must expect a significant increase in canola acres this growing season.
Canaryseed is holding strong again this week and with new and old crop bids around $0.30/lb, it’s tough to go wrong making sales. New crop canaryseed is still trading at $0.30c/lb FOB farm with an act of God in some locations, but bids are getting tougher to find. Keep in mind these contracts are only on the first 10bu/acre, so you will have overage to play the market with later on should the value creep up. Old crop bids have perked up a touch with some interest at $0.32-$0.33/lb FOB farm for summertime movement. Quicker movement is becoming harder to find, but we suggest you post an offer and see if someone will take it at a slightly discounted price. Seed sales are almost coming to an end as we hear rumours of some growers in the field and others getting very close. With that being said we do still have a good supply left, so talk with your merchant if you’re looking for last minute options.
The lentil market has been sideways to weaker this week on most types of lentils. Spot prices on #2 large greens are down a cent or so to $0.34-$0.35/lb FOB farm as of late, while #1 small greens likely still trade at $0.35/lb on farm. Reds continue to flutter around $0.29 to $0.295 on farm depending on area and freight costs. New crop prices for fall make some sense at $0.28 picked up on farm on #2 reds and $0.32-$0.33 on farm for a #2 or better large green. These are solid starting points to get some market risk off your plate on contracts that carry an act of God with drought protection, if it comes to that. Projected overall lentil acres seeded in Canada are about the same as last year with some rejuggling on types: less reds and a few more greens. US acres look to increase on the green lentil side of things and as that is mostly what they seed, their overall lentil acres will likely be up. Talk of price strengthening in the Indian market may lead to some price increase but we won’t know until it happens and there is still a fairly strong export pace from Australia to tamp down our price expectations.
The oat market remains relatively unchanged from last week. We continue to see bids in the high $3’s to low $4’s/bu for milling oats with pushed out movement. If you are looking to lock in some new crop milling oats, we’re seeing mid $3’s for Sept.-Dec. movement with 2022 movement ranging around $4/bu. The closer you are to the Manitoba boarder the better, as most product is bid to head east. On the feed side, buyers are still looking for heavy product and paying anywhere from $3 – $3.50/bu picked up on the farm depending on location. If product is coming in light, look for the discounts to be applied.
Chickpea markets overseas have been seeing a bit of uptick in value despite India and Pakistan being in the middle of harvest. Canada is still reporting a drop in acres by an estimated 24% while the US is slated to increase 7% from last year. There is no question that both the US and Canada are experiencing dry conditions. With chickpeas in the bins from up to 3 years ago, growers making last minute changes to their rotation could mean a shift in these statistics. The market bids have not moved from last week ranging from $0.32-$0.33/lb for a #2 large Kabuli FOB farm for May-July movement. New crop bids are still $0.25-$0.27/lb FOB farm with an AOG and sample/feed grade bids are coming in around $0.18/lb depending on the downgrading factor.
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.