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Rayglen Market Comments – January 20, 2021

The canaryseed market remains strong, but there is little to no change from last week. Spot values are trading around $0.31/lb FOB farm, or $0.32/lb delivered to plant. You may find $0.32/lb FOB farm for Spring movement but remember road bans will most likely come into effect the last half of March which may affect the bid. New crop bids are thin, but growers are still able to catch $0.26/lb FOB farm with an act of God. Getting 10bu/acre locked in at that price may not be a bad place to start if considering the 5-year pricing average.  If you are looking to get into canary or switch out your seed for a new variety, talk with your merchant as we do have seed supplies available. Also keep in mind that if you have a certain price you are looking for, offers are a great way to showcase your grain to all buyers.

Feed and milling wheat markets have been quite strong over the past couple weeks and continue their trend as we write. Feed wheat, with delivery pushed out into Summer months, has been trading over $7.00/bu FOB farm in many areas and up to $7.60/bu FOB farm in Alberta. Producer bids for milling CWRS range from $7.75 to $8.05/bu delivered for a #1, 13.5%, with a few reports of strong premiums on higher protein product. Growers with 12.5% protein can capture bids slightly less, around $7.55 to $7.85/bu delivered, with movement pushed further out. Bits and pieces of #1 US spec new crop durum continue to trade around $8.25/bu FOB farm in South Central & Southeast Saskatchewan. These are very good values on wheat, and we suggest growers make some hedges as we are unsure how long this will last.

The yellow pea market continues to hold its premium to greens as world supplies continue to shrink. We can expect this market to hold strong so long as China maintains their importing pace destined for their feed channels. Yellow peas are trading at $9.75 – $10.00/bu delivered, with the latter seen in the Saskatoon area. We have also had new crop values trade at $8.00/bu FOB with an act of God and although not a widely seen bid, we urge growers to get their targets in. Green peas remain quiet at $9.00/bu FOB, with very little overseas demand. Maple peas have had a few trades pop up here and there at $10.00/bu FOB farm, again with targets being the best option. India’s pea crop is looking favorable right now and they were able to add a few more acres to their total, about 1% higher than the 5-year average, as per reports. Therefore, we can expect India to remain fairly non-existent as an importer in this pea market.

Recent rains in South America have buoyed the prospects of favorable yields and conversely have sewered US soybean futures. Local soybean bids now hover around $14.00/bu picked up depending on location. Faba bean export bids remain virtually non-existent due to a return in normal global trade. Production in Australia and parts of Europe are back on track and importers are falling back into previously established buying relationships. Feed faba bids are near $7.00/bu to $7.25/bu FOB farm, location dependent. Dry bean bids continue to slide from early harvest values due to abundant North American supply. We continue to hear reports of new crop seed shortage due to poor germination. New crop dry bean contracts are available at attractive price levels. Contact Rayglen to book your acres.

Feed barley continues to dominate the local barley marketing discussions. Feed bids are historically high in both spot and deferred shipping positions. Old crop feed ranges from $5.00/bu to $5.50/bu FOB farm location dependent. Deferred feed shipping bids into Summer are approaching $6.00/bu FOB farm. New crop feed bids of $5.00/bu to $5.25/bu picked up have been buying acres. Malt barley bids continue in their previously laggard fashion due to poor demand. Old crop malt bids tend to equal feed bids and new crop bids are not attractive enough relative to feed to get growers to commit.

The milling oat market continues to maintain its pricing strength as bids reach the upper echelon $3’s, butting up to $4/bu depending on movement timeframe and farm location. The great freight locations are typically in South Eastern Sask., as product heads East into Manitoba. New crop milling bids are also available, so give your Rayglen merchant a call to firm up pricing in your location. On the feed side, there is not a ton of love for product under 40lbs but if you are 40lbs plus, look for pricing anywhere in that $3 – $3.50/bu range with fairly quick movement. As a side note, we would like to mention that the CBOT is looking for participants in a market survey regarding the Oat Futures contract. To quote our colleague Greg Kostal, “Disconnect between oat futures and Western Canada cash price grid is obvious. Some like it that way, while others don’t. There is also talk of possibly adding a Winnipeg switching district delivery location. No matter if a user, farmers, shipper, processor, the opportunity to provide feedback on possible amendments is now. Response deadline is Jan. 22.”

One of the strongest markets throughout this winter remains to be the flax market. Current bids are hitting at $20.00/bu picked up, on #1 quality, for those who still have unsold product in the bin. China is still the main buyer in this market but there seems to be product going to the other 2 big players as well, Europe and the US. European purchases are the largest we have seen in Canada for several years as Chinese markets usually take more product from the Black Sea Region. If you still have flax in the bins these prices do seem to be stable for time being, but this market is generally an escalator on the way up and elevator on the way down, so being heavily sold today is a prudent move and is encouraged. If you’re seeding Brown flax, also consider taking some risk off the table at $15/bu picked up on farm with act of God for 2021 crop. Even if the acres don’t increase much in Canada, they are sure to increase in other parts of the world at these values, so hedging the downside is a good play. For Yellow flax, grower spot prices are similar to Brown at $20/bu range, while new crop is showing closer to $17/bu picked up on farm with act of God.

After months of a steady climb, we are seeing drastic declines in canola futures markets over the past two days. While fundamentals appear not to have changed as much, this market is very strong and therefore, very volatile. Weekend rains in South America appear to be the news that has sent futures downward, with Brazil receiving rainfall across major areas of the country. With that being said, we’re still looking at possible small crops from Brazil and even more so, Argentina. At time of writing, March futures are at $650.80/MT which is down from $687/MT at the same time last week. Technical corrections are a part of futures markets and we could see this market come right back up in the coming weeks.

Lentils continue to strengthen again this week, but as prices rise farmers seem to remain reluctant to sell. Large greens seem to be the quietest out of all the lentils on the trade side of things. Bids this week are between $0.35-$0.36/lb delivered depending on location throughout the province. New crop large green lentils range between $0.28-$0.30/lb FOB farm, again location specific. Spot red lentils are trading between $0.28-$0.29 delivered for Feb.-March movement and as of this morning, new crop contracts are being done at $0.25/lb Fob farm with act of God. Small green lentils are still sitting at $0.28-$0.29 FOB farm with new crop indicated at $0.25-$0.26/lb. At these levels, new crop lentil bids pencil out with some decent returns. For example, red lentils come out roughly at a 21% return on investment, while large greens pencil a 19% return on investment.

Chickpea markets are getting a bit of buzz with old crop bids at $0.27/lb FOB farm for Feb.- Mar. movement. This has not generated a lot of business, but it has certainly kept the conversations coming. New crop has not formulated a bid yet but when talking to growers, the ideas hover around $0.30-0.35/lb. Clearly there is a divide on the buy and sell side of the market. If growers do not see values come up, it is likely they will grow acres open and gamble on price improvement. We have also heard growers switching out from Orion seed to Leaders due to disease issues last year. If you are looking for seed, feel free to call us for a market comparison.

Mustard has been fairly busy this week as the price shows strength in most areas. Brown mustard is stealing the show with spot bids sitting at $0.36/lb FOB for prompt movement with potential for higher on firm offer. Yellow has picked up slightly, with spot bids sitting at $0.41/lb FOB farm for fairly quick movement also. Forge Oriental is up at $0.32 for March/April and Cutlass Oriental has seen some trading done at $.30/lb FOB for that same window. New crop brown mustard is steady at $0.36/lb, with contracts being offered for September through July of 2022. Again, show us offers if your sell point differs slightly. New crop yellow is sitting at $0.42/lb and Forge or Vulcan Oriental as high as $0.30/lb for the same time period. Cutlass is now at $0.30 cents for new crop also after a recent jump. Please call us to discuss all your new crop and seed options. We have all varieties of seed, either treated with 2 treatments, or un-treated and our prices include delivery 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 13, 2021

Saying it has been a good week for canola futures would be a massive understatement. Expectations of tightened stocks being reported by the USDA on their Jan. 12 report led to strength in the futures. Those expectations were realized in a big way as ending stocks were lowered on all US corn, soybeans, and wheat. At time of writing, March futures are sitting at $687/MT. This is up from $652/MT last week with reports of $15.00/bu FOB farm out there for March/April pickup. November futures are currently at $552/MT, leading to some new crop bids over $12 depending on local basis. Keep looking out for your best local basis options and consider locking in some historically high values.

The feed wheat market keeps gaining strength, now with the possibility to capture $7.00/bu FOB farm in many areas for summer delivery. Spring wheat futures were doing well yesterday, but they finished slightly behind the rest of the markets. Producer bids for milling CWRS range between from $7.50 to $7.65/bu delivered based off #1 quality and 13.5% protein. Growers with 12.5% protein wheat are able to capture values slightly lower, from $7.30 to $7.45/bu delivered with further out movement. Pending freight costs, growers may be better off selling into the feed wheat market at this point. We have been seeing bids on old crop high quality durum at $8.75/bu delivered into certain locations and growers still have some decent opportunities available if looking to make sales.

The only positive changes in the pea market, as of late, seem to be on yellow side. Old crop yellow peas have been trading at $9.75/bu delivered and while analyzing the past 10 years, yellow peas have been above $8.75/bu only 15% of the time. Therefore, moving some yellows into this market does not seem like a bad play to hedge the downside risk. China is the whole yellow pea market right now and they remain a strong buyer into their feed channels, however this is a vulnerable market. India has not been a player and with their rabi crop going well so far, they likely will not be. Green peas remain quiet with buyers unexcited to purchase and farmers looking to sell. Current price is $9.00/bu picked up. Maple peas saw a slight increase to $10.00/bu picked up in a few areas, with targets being a key factor in trading. For new crop, yellows are getting buyer interest at $7.50/bu, however, $8.00/bu picked up has traded on firm target. If yellows start trading in all areas at $8.00/bu FOB, we can expect acres to be going up.

The barley world is trending in an interesting fashion as of late. Although there is not much talk on the Malt side of things and markets seem to be fairly bullish, the price of feed does not have many asking why. Old crop feed can easily pencil out $5.00/bu to $6.00/bu picked up, depending on how long you want to sit on it. Rumblings of new crop feed prices are sitting anywhere from the $4.50/bu mark up to $5.25/bu, area dependant. Given the current markets, now would be a great time to start thinking about what variety of barley is best to seed. If your end game is pushing product into a feed market, exploring some of the newer malt varieties out there would be a great option. Varieties like Synergy, Bow and Connect have been proven to get you higher yields than the old days of Metcalfe and Copeland. Seeding any of these gives you a double window for opportunity. On the Malt side of things, if prices take off and your quality is to spec, you can source it out that way and still achieve the Malt value to put towards your bottom line. If feed prices stay strong and/or you don’t make malt spec, the extra yield will also give you higher returns. Contact one of our Rayglen merchants today to discuss seed and pricing options!

Pricing on oats has stayed strong this year with a record number of exports, approximately 1 million tonnes, already recorded as of week 22. We’ve seen a slight increase in US shipments, but also coming out of the woodwork, is a demand from Central and South America with buyers we haven’t seen before. Canada has even “stolen” some export opportunities from Australia into destinations such as Mexico, which may swing back to favor the Aussies with decreased pricing; something to keep an eye on moving forward. As we continue to tick away into the month of January,  pricing remains firm with delivered in bids pushing upwards of $4.30 – $4.60/bu in Manitoba. So, depending on movement timeframe and farm location $4.00/bu picked up is a possibility. Hotspots tend to be along the SE Sask/Manitoba border. That being said, we have seen quotes of $3.60 – $3.70/bu in NE Sask. So, give your Rayglen merchant a call for price specifics at your farm. Feed continues to fluctuate between $3 – $3.50/bu with buyers looking for 40lbs oats. New crop milling oat values are ranging from $3.50 – $3.75/bu delivered in depending on movement timeframe with the latter pushing into 2022. Seeding intentions for the upcoming year remain interesting as there may be too much competition for an increase in oat acres with musings that we may see a dip. Time will tell.

Red lentils gain a little strength this week, while greens remain flat. A few buyers have strengthened their red bids this week by one or two cents and as we write, trades are taking place between $0.27-$0.28/lb picked up on farm in a few areas. Large greens remain in that $0.33-$0.34/lb mark FOB farm, again pending freight costs. Small greens have been in light trade but bid at $0.28-$0.29/lb picked up. New crop programs are starting to become available with reds at $0.22-$0.23 FOB farm with AOG on #2 or better quality. Large green lentils are bid at $0.27 cents FOB farm with AOG basis #2 quality and small greens at $0.24-$0.25 for #1 quality. Lentils once again show a decent return on investment based on our yearly crop planner.  They pencil out at 18%-21% return on investment, putting them in the top 10 crops to grow this year based on this week’s new crop pricing.

Canaryseed markets seem to have come back to life this week with buyers starting to poke around for new crop acres. Right now, we are seeing bids at $0.26-$0.27/lb FOB farm available in most areas with an act of God.  That may be a good place to start to hedge 10bu/acre considering our previous 5 years of lower pricing. Old crop hasn’t seen as much interest this week as new with bids down slightly. Bids at $0.32/lb are no longer available for quicker movement and it looks like $0.31/lb FOB farm is the new normal. If you can wait and road bans don’t affect you, $0.32/lb may work for Spring movement on firm offer. With the market fluctuating on new and old crop, offers are the way to get buyers attention right now.

While it is still very early, chickpea acres are forecast to decrease for the upcoming crop cycle in Canada by about 8%. The US revised reports showed production for the 2020/21 crop year down by as much as 31%. This could translate to better value for bushels in the bin, but through conversation with growers, there is still plenty of product to go through before any sizeable movement happens in the market.  New crop values range from $0.23-$0.24/lb FOB farm for #2 or better large Kabulis with an AOG and discounts down to smaller sizes. Current crop values remain the same, ranging from $0.24-$0.25/lb FOB farm in most cases, with the odd $0.28-$0.29/lb popping up.  Renewed interest for old crop Desis has popped up, so if there are any in the bin, please give your broker a call!

Flax prices once again remain strong this week with prices ranging anywhere from $19.00-$20.00/bu picked up in the yard.  New crop is steady at $15.00/bu also picked up with an Act of God.  Yellow flax is about par. Demand from China has been growing but they are also diversifying their flax sourcing. We could see some additional acres put in this year with these prices, not just in Canada but in other markets such as the Black Sea Region. The biggest question is whether there is more upswing in this market or if demand will be rationed. Prices in Russia and Kazakhstan have been sideways over the last while since buyers are not willing to overly chase the market. It is no surprise that supplies will be tight going into the next crop year, so if you have not priced out any flax as of yet, now is the time to start locking some in.

Soybean prices spiked higher yesterday as the USDA WASDE report tightened supply estimates. Local soybean bids now hover around $14.50/bu -$15.00/bu picked up depending on location. The Faba bean story remains similar to previous reports, whereby export bids are slim due to a return to normal in global export competition. The faba export market is a long shot this year, but if an opportunity were to develop it needs to occur no later than mid to late Feb. Feed faba bids are near $7.00/bu FOB farm location dependent. Dry beans have seen strong bids this fall but will be under pressure from a rebound in supply from the fall harvest. There are widespread reports of an unexpected new crop seed shortage due to poor germination. New crop dry bean contracts are available at attractive price levels. Contact Rayglen to book your acres.

Mustard has been fairly busy this week with the uptrend continuing on brown. Historically very strong, spot brown mustard now sits at $0.35/lb FOB farm for January to March pickup with potential for higher on firm offer. Yellow and Oriental continue flat, with spot yellow sitting at $0.40/lb FOB farm for February to March movement.  Forge Oriental is at $0.32 for Feb./Mar. and Cutlass Oriental remaining the outlier, but now steady at $0.28 FOB for that same window. New crop brown mustard is steady at $0.35/lb, with contracts being offered for September through July of 2022. New crop yellow is sitting at $0.42/lb and Oriental as high as $0.30/lb for the same time period. Please call us to discuss all your new crop and seed options. We have all varieties of seed, either treated with 2 treatments, or un-treated and our prices include delivery 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 6, 2021

It has been a couple weeks since our last report, and since then, it has been all good news for canola growers across the Prairies. Canola futures continue to follow soybeans upwards and are pushing to levels we have only seen once in the past ten years. The US dollar losing some strength, as well as concerns surrounding dryness in large areas across South America are a big part of the bullish pricing we are seeing. March futures sit at $652/MT at time of writing, with May futures at $643/MT. These are increased from last week when we saw $636/MT for March and $625/MT for May. Not only are futures rising, but basis levels appear to be narrowing with reports of positive basis levels in some areas. Keep an eye out for the best basis levels in your area to maximize your price when looking to sell.

As we kick off a new year, pea markets and producer bids remain relatively unchanged. Yellow peas are strong at $9.25/bu delivered to several locations throughout the Prairies, with $9.00/bu FOB workable in a few areas too. Green peas are still soft at $9.00/bu FOB, while Maple peas see a slight increase to $10.00/bu FOB; tonnage seems to be limited at this value. New Crop bids are slowly starting to become available, but mainly just for yellow peas. We have seen programs pop up at $7.00 – 7.50/bu FOB farm with an act of God, again with limited tonnage available. Growers have been targeting at $8.00/bu FOB on new crop yellows, but this has yet to see any buyer interest. China remains the top importer of our yellow peas, which will continue to hold that market strong. India’s pea plantings are still ahead of pace, so if they get favorable weather over the next couple of months, we cannot expect them to come into the importing market.

Flax prices are still aggressive as we start the new year but vary depending on movement timeline. We see bids range from $18.00/bu – $19.00/bu FOB today, with the former poised for Jan.-Mar. shipment and the latter pushing delivery into the summer months. New crop prices also remain strong with average bids in the $14.50/bu range for Sept.-Dec. delivery. Some analysts are projecting exports for the 2021/22 crop year to be similar to the previous, with the biggest factor being demand for Canadian flax and its effect on prices going forward.  This will be influenced by production overseas where strong prices have also encouraged more seeded acres for the upcoming crop year. Ending stocks for the year will be tight as we have seen the last few years.  If you are putting some flax in the ground, keep in mind price direction will be influenced by competitors. Locking in the first 10 bushels is not a bad idea at these levels.

The feed wheat markets remain strong as we start 2021 and product continues to trade around $6.50/bu in Central Saskatchewan for April-June movement with standard specs; 58lbs and max 14.5% moisture. Milling CWRS values have been trading between $7.25-$7.60/bu delivered based off #1 quality and 13.5% protein. Our office has also seen new crop #1 durum trade at $8.25 FOB in South East Saskatchewan for Sept./Nov. movement. Those bids seem to have quieted down for now, but we still encourage growers to put in their targets at these levels. Old crop high quality durum has been trading between $8.00 to $8.50/bu FOB depending on location for August pick up. Again, this business is slow, but opportunities do exist. Movement is largely pushed into summer as you can see, but some of these values are too strong to ignore.   

Soybean futures are soaring based on dry weather and pod filling concerns in South America; along with China continuing to drain U.S. soybean supplies. Local soybean bids now hover around $14.50/bu picked up depending on location. The Faba bean story remains similar to previous reports, whereby export bids are slim due to a return to normal in global export competition. Feed faba bids are near $7.00/bu FOB farm, location dependent. Dry beans have seen strong bids this fall but will be under pressure from a rebound in supply from this next harvest. There are widespread reports of an unexpected new crop seed shortage due to poor germination. New crop dry bean contracts are available at attractive price levels. Contact Rayglen to book your acres.

Canaryseed markets remain flat but strong with bids unchanged from the weeks leading up to the holiday season. There are still buyers looking for product, although not quite as aggressively as they once were, and it seems as though supply and demand have reached an equilibrium. Values hold at $0.32/lb FOB farm for quick movement with buyers showing a “take it or leave it approach” and unwilling to pay more. Even deferring delivery into the summer months doesn’t get much attention, so if you are looking at getting some on books, now may be the time. We are still waiting on the majority to post new crop bids but do have one buyer indicating $0.24/lb FOB farm, with Act of God. If you have a price in mind but the market is not there today, offers are a great way to show your product and get  buyers’ attention.

Barley markets are still attempting to find themselves given the push from Chinese exports. Not much on the forefront of new crop pricing for Malt barley, but if you are looking to lock some up, you could pencil in $5.00 – $5.50/bu, area dependent. Feed barley is still holding on strong with some new crop production pricing in the range of $4.50 – $5.00/bu. Growers with barley sitting on the farm right now should be safe to pencil in $5.00/bu for feed or higher pending location. Maltsters are still slow on the spot side of things, but once they start to clean up some of their production contracts you can expect some pricing to come out. Keep in mind that sitting on malt barley because you expect there to be a premium to feed, may not bode well and might not always be the case. Although you are dealing with the same product, you are comparing apples to oranges when it comes to the price of feed affecting the price of Malt. They are two completely separate selling windows. Maltsters can only offer what they are getting end of dollar, so keeping up with the current feed price may put a challenge onto their plates. Feed prices are strong so don’t hesitate to sign up at these values. The magic 8 ball doesn’t have the availability to determine how long these prices will hold on for.

Lentil markets remain quiet as we start out the new year. India has decided to increase tariffs once again, back to 33% while the American tariff remains 55%. Aside from the tariffs, Australia has ample supply to fill India’s needs for the near term and we must remember India is ahead of last year’s seeding rates. This will keep lentils prices from any big gains over the next few months.  Major concerns in the lentil market today are: Will India get a good quality crop off? Who else comes into the marketplace besides India? Finally, what will Canadian seeded acreages be next year? All factors to consider when planning sales now or in the future. Bids this week for reds is ranging between $0.24-$0.26/lb FOB farm based on location. Large green lentils are still trading in the $0.33-$0.34/lb FOB farm range, while small greens trade in the $0.27-$0.29/lb FOB farm range.  Some new crop pricing is out as well this week and bids are indicated at $0.27/lb for #2 or better for quality large greens, $0.22/lb for a #2 or better red lentil and $0.25/lb for a #2 or better small green, all prices are quoted as FOB farm.

Despite chickpea markets being dull compared to previously active and high valued years, they are still considered to be a lucrative crop to seed. Discussion from the buyer’s side regarding putting a dollar value on a new crop chickpea is relatively quiet given the amount of stock on farm still available and buyers uncertainty in the StatsCan numbers. Old crop values range from $0.24/lb FOB farm to $0.27/lb delivered plant for first quarter of 2021. Feed chickpeas are still in high demand with buyers and bids ranging from mid to high teens depending on downgrading factors. If you are planting chickpeas for the coming year and want to switch up your seed, give us a call for options.

As we get back to work after the holidays, we are seeing generally the same mustard prices. Strength in brown mustard continues both in new crop and old. Spot brown mustard now sits at $0.35/lb FOB farm for January to July pickup. Call your merchant for movement options on this. Yellow is sitting at $0.40/lb FOB farm for February to March movement, while Oriental Forge variety sits at $0.29 for Feb./Mar. as well. Cutlass Oriental remains the outlier but is now steady at $0.27 FOB for that same window. New crop brown mustard is still steady at $0.35/lb, with contracts being offered for September through July of 2022. New crop yellow is sitting at $0.42/lb and oriental as high as $0.30/lb for the same time period. Please call us to discuss all your new crop and seed options. We have all varieties of seed, either treated with 2 treatments, or un-treated and our prices include delivery to your yard.

We are still seeing pretty strong prices on milling oats this week. Bids picked up in the yard over the next few months are near $4/bu in great freight areas of Sask (Southeast) and numbers hit mid $3’s for the long hauls (Northwest). If you’re sitting on oats it’s probably a decent idea to get them locked up and moved out before shipping windows start to look uglier with road bans coming into effect in the next 2 and a half months. Values on feed oats are still strong with low to high $3’s for product that weighs up but is off on color or other grading factors. New crop bids (pushed into early 2022) are showing North of $3/bu in a few areas as a FOB farm value,  which is nothing to sneeze at for locking in an oat value most years, and a good start for sure.

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, 2020

The pea market remains unchanged from last week. Buyers are still showing most of their interest in yellow peas, while green peas have had little attention. The price gap between the two remains virtually closed as yellows are bid at $9.25 – 9.40/bu delivered (the latter seen in North Central Sask) and green peas are bid at $9.00 – 9.50/bu delivered. Maple peas have softened a bit as well with $10.00/bu picked up harder to find and most buyers now posting $10.00/bu delivered. New crop values are still slow to come to the market with most of the grower attention focused on yellow peas. Recent reports suggest China has slowed their importing pace of yellow peas; however, China is likely to deplete our pea stocks, which will support prices. This, again, leaves us with all our eggs in one basket while relying on trade relations and demand staying strong out of China.

Feed barley future markets seem to be quiet due to the uncertainty of China’s continued purchasing interest. If China remains the key player in this game, then expect feed prices to stay strong into new crop. Today, a $5.00/bu production bid does not seem like a bad play, but lots are left scratching their heads and wondering if this price is going to go up. Well, if China keeps buying than yes, it more than likely will rise. However, if China turns their tap off, then these attractive on farm values are likely to dry up domestically. Locking up 25% of your farms production today may not be a bad idea and rolling the dice on the remaining 75% gives you the risk vs. reward challenge. On the malt side of things, we patiently wait to see which malting company is going to bite the bullet first, with the rest likely to follow soon afterwards. Initial thoughts would be a $5.25 – $5.50/bu new crop value, however maltsters may want to try and spread the gap between feed with bids closer to $6.00/bu. Due to other circumstances such as carryover of 2019 and a strong 2020 crop, they may not have the buying power to go any higher. A true supply versus demand scenario.

The flax market continues to see historically high values, for the time being, with spot prices on brown sitting at $18.00-$18.25/bu FOB farm and shipped by March. We have seen some better values being bid for further out (Jun./Jul.), and we encourage you to call our office for pricing opportunities. New crop prices on brown flax start at $14.00/bu picked up with many areas seeing slightly stronger bids due to freight advantages. The market is being supported with demand overseas into China and the EU. Yellow flax prices are showing a small premium over brown flax, but overall demand is much slower. Exporters are still trying to move flax out of Kazakhstan through various border points, while there are also reports that China has cut their railcar acceptance by almost half for the month of December. These are all factors to consider for those with product on the farm. If you are looking for seed for the 2021 crop year, call our office as we have some sources still available.  

The milling oats market remains firm and continues to see strong pricing ranging anywhere in that $4.15 – $4.35/bu delivered in for Jan.-Mar. movement. Look for that to pencil out in the mid to high $3’s in most locations across Eastern Sask. If you are looking ahead to next year and wanting to lock in some new crop tonnage, give us a call and we will see what we have for bids specific to your location. On the feed side, we continue to have interest from our buyers in that $3.00 – $3.75/bu range picked up on the farm. Buyers are looking for a dry, min. 40lb oat and have expressed the possibility of some pretty quick movement.

Feed wheat values remain strong this week with trading being done at $6.00 to $6.50/bu FOB the farm, pending location and freight costs. Delivery on feed wheat probably won’t happen until the new year, with many buyers already filling their Jan./Feb. positions. Those on the fence about moving some product into this market should consider not only securing their target value, but also their target movement window. Milling wheat values are relatively unchanged with $6.50 to $7.00/bu delivered as the going rate in most cases. Bids are based off #1 quality and 13.5% protein. High quality Durum markets remain stable with spot bids at $8.00-$8.80/bu FOB farm pending location, for August pick up. A bit of new crop has traded over the past week at $8.00-$8.25/bu FOB farm pending location for Sept./Oct. pick up.

USDA reports continue to support strong soybean demand characteristics. Chinese demand shows no signs of tapering off and is likely to set import records. The strong recent run up has some analysts warning of a potential profit taking reverse; followed by further volatility. Local soybean bids now hover around $12.50-$12.75/bu picked up depending on location. A successful faba harvest in Australia has pushed Canadian product to the export sidelines and thus currently has most domestic product destined for feed markets. Feed faba bids are near $7.00/bu FOB farm, location dependent. Dry beans are finding recent support due to Mexico’s demand. That said, North American production levels are up sharply year over year and will thus have some dampening effect on bids. New crop dry bean contracts are available at attractive price levels. Contact Rayglen to book your acres.

The Canola market continues the aggressive push from last week as the Jan. futures drive past $638.70/mt this morning. Canola seems to be riding the coattails of soybeans as China keeps buying and a strike in Argentina strands cargo ships down South. Futures climbing and basis levels tightening has made the canola prices for late winter and early spring look pretty appealing.  This is ideal for those with iron resolve that have not already sold out by this point. Delivered in prices for January top $13.50/bu in some areas and are pushing to almost $14.00/bu for the April timeline. It’s been a few years since we have seen the canola futures this high; dating back to 2013. Let’s hope this run up is similar to the sustained 2010 to 2013 high prices rather than the blip of 2008 where it fell as fast as it rose.

The week leading up to Christmas continued to show strong pricing, especially when it comes to brown mustard. There seems to be some concerns in the market concerning the number of acres being seeded this Spring, pushing brown up recently. Spot Brown mustard now sits at $0.34/lb FOB for January to February pickup.  Yellow is sitting at $0.40/lb FOB farm for February to March movement. Oriental Forge variety sits at $0.29 for Feb./March, while Cutlass Oriental is now steady at $0.27 FOB for that same window. Surprisingly, new crop brown has popped up to $0.35/lb, with contracts being offered for September through July of 2022. New crop yellow is sitting at $0.42/lb and oriental as high as $0.30/lb for the same time period. Please call us to discuss all your new crop and seed options. We have all varieties of seed, either treated with 2 treatments, or un-treated and our prices include delivery to your yard.

No surprises in chickpea market this week. Much like all other commodities there is a bit of a flat line as we head into the final weeks of 2020. Old crop bids for #2 Large Kabuli are at $0.26/lb FOB farm Jan.-Feb. and sample/feed grade are around $0.16/lb FOB farm. No discussion around new crop other than potential acreage numbers next season as well as what the global supply chain looks like and how it might affect the value. As those uncertainties remain, buyers hesitate to put out bids and own acres just yet. If you are looking to switch up seed and need suggestions, please give a call.

Canary markets have remained quiet but firm over the past few weeks. We’re still seeing bids for a January-March timeframe in the $0.32/lb FOB farm range, with options for quicker movement with slightly lower pricing. We have yet to see any bids come out for production contracts, but we should see those starting in the near future. According to the CGC’s handling statistics, at the start of December we passed last years farm deliveries of canary, which should keep bids strong into the new year. As always, if you have a firm target price in mind on old or new crop, give us a call and we can get it posted up on our website for our buyers to take a look at.

As we approach the Christmas holidays, we see another quiet week in the lentil market. Since last Wednesday we have seen a total of 4 Lentil trades take place affirming our assumption of slow buyer demand. Buyers are also waiting to see what India does with the lentil tariffs at the end of the month which is likely contributing to the slower buying pace. On the other hand, sellers are also hoping that the new year will bring a little upside to values and are hesitant to make any more sales until January at the earliest. Bids remain the same as last week with red lentils trading between $0.24-$0.25/lb FOB farm, large greens at $0.32-$0.33/lb FOB farm and small greens $0.27-$0.28 in most cases.

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 16, 2020

The only change in pea markets this week is the gap between yellow and green pea bids. As yellow peas strengthen, greens continue to soften, with the price gap now virtually closed. Yellow peas are at $9.25 – $9.40/bu delivered plant in Northern SK, green peas are at $9.00 – 9.50/bu delivered plant in most locations and maple peas remain stable at $10.00/bu picked up in light trade. With yellow peas now taking the lead over greens in some cases, we can expect that acres will be increasing at these values. Currently, new crop yellow peas have been indicated at $7.50/bu delivered, however, let your merchant know your target price as we can post up a firm offer with a 10 bu/ac AOG. India’s pea prices are strengthening, and plantings continue to outpace last year, but it is too early to tell what their total acreages will look like. We do not expect any changes on their import restrictions, therefore, the strength in our yellow pea market will continue to rely on China’s buying. If you have not moved any yellow peas yet, we recommend taking some risk off the table at these historically high values.

Oats continue to be a solid marketing play as we have seen some pricing up in the $3.80/bu FOB farm range in Southeast Sask. These bids are for Jan./Feb. movement on #2 milling quality. The further you pull away from the Sask./Man. border, the more prices will soften, but don’t hesitate to reach out to your Rayglen merchant to see what bids look like on your farm. Also, we have expressed interest for min 40lb oats with max 14.5% moisture for prompt pickup destined for the feed market. Please call for pricing in your area as it ranges from $3.00 – $3.75/bu. Please be able to provide a picture, bushel weight, moisture, and number of bushels to firm up bid.

Feed wheat remains strong and trading between $6.00 to $6.50/bu picked up depending on location. For the most part, buyers are quoting delivery windows into the new year, but the odd opportunity to move product prompt does arise… albeit, values are usually on the lighter side.  The closer you are to the Southwest part of the province and into Alberta, the better the value will be in most cases. Milling wheat prices are not much better than feed, and bids roll in around $6.50 to $7.00/bu delivered based off #1 quality and 13.5% protein. There was some new crop durum wheat trading last week at $8.25/bu FOB farm in SE Sask with a range of October through December movement.  If you are looking for the most up to date pricing in your area, please call your Rayglen merchant.

The canary market has held up pretty well over the past few weeks with bids for movement in the new year (Jan. through March) still catching $0.32/lb picked up on farm. At this time there are a few sellers posting targets at $0.33 picked up, but thus far, we have not had any buyer interest in those levels. The new crop market has not materialized for canary as of yet, but suspect sellers are shooting for $0.30 and buyers would likely look at $0.25 so there is still some disconnect for locking in production. In years past buyers were often not too concerned with seeing a pre-shipping sample of canary as long as it was in decent condition and dry; now with the additional restriction to get product into Mexico it’s pretty pertinent for the buyer to see a pre-ship and assess what market your product fits into. So, it is very important to keep representative samples of your product available.

Chickpeas around the world are making news, as reports on Canadian exports are down compared to this same time last year. India is moving into their season of planting and they are maintaining a pace ahead of normal. This is not surprising as over and over again we hear of India becoming more autonomous. Another major player, Mexico, is amidst their second largest seeding of garbanzos in 8 years. All of these factors,  as well as what is in the bin in your own backyard as well as your neighbours should be considered when weighing timing of production marketing.  It is expected that once COVID-19 is more under control with vaccination distribution that the chickpea market will open up again. Given the global outlook of supply and the dynamic of how the supply/demand chain has changed; there is skepticism for huge swings from current values. There is a lot of hummus to go through before we can see bids of yesteryear.

It’s been a very strong week for canola futures markets from January out through July. January futures broke past the $600/MT mark, something we haven`t seen since 2013. At time of writing, January futures are sitting at $603/MT which is up from $583/MT at the same time last week. Much of the strength from the past week is coming from gains in vegetable oils across the board. March futures are trailing a bit behind at $595/MT. With that being said, we’re hearing reports across Saskatchewan that local basis levels for March are narrowing and may represent your best pricing option for the time being. Some may be starting to look towards new crop with pricing showing so much strength. November futures are currently at $521/MT, softening a few dollars from the past couple weeks.

Flax bids remain steady again this week with spot prices on brown sitting at $18.00-$18.25/bu FOB farm and shipped by March. We have seen some better values being bid for the summer month time frame (Jun/Jul), and we encourage you to call your merchant for pricing. New crop can still be captured at $14.00/bu picked up with act of God and in some cases higher. Inventories at Thunder Bay are expected to ship out before the Seaway starts to freeze up. On the West coast, inventories are starting to decline but more flax is still being shipped from elevators. Flax exports from Russia were up in October and although there is no clear indication of the size of their crop, exports suggest production is similar to the last couple of years. Kazakhstan flax exports are still experiencing some logistical hold ups. For now, flax prices remain firmly supported by Chinese and EU demand; keep in mind that once Kazakh flax finds its way into the market, prices may soften.

Soybean support has come from stronger domestic demand, yield concerns in South America and steady exports to China. Local soybean bids now hover around $12.50-$12.75/bu picked up depending on location. Fabas are largely a feed play right now due to other global exporters eating our lunch. Feed faba bids are near $7.00/bu FOB farm, location dependent. North American dry bean production has increased sharply year over year. Harvest delivery pressure is beginning to subside, and some early Mexico export demand has come to some of the specialty classes. New crop dry bean contracts are available at attractive price levels. Contact Rayglen to book your acres.

Lentils continue to be quiet this week with very little trade taking place and limited interest from both sellers and buyers. Oversea markets continue to slip as Australia crop remains on pace to produce their estimated 1MMT and Indian planting continues at record pace. Early thoughts from one buyer this week was that they would possibly look at $0.21-$0.22/lb with AOG on new crop reds, but nothing firm. If this trades it helps us find the bottom for the red market. Large green lentils are quiet but do not seem to have the same nervous under tones to them like the reds. The StatsCan number shows that there is a smaller supply of large and small greens so there is a possibility that these markets could strengthen as we move into spring. Spot bids remain similar to last week, red lentils are still trading between $0.24-$0.25/lb FOB farm, large greens at $0.32-$0.33/lb FOB farm and small greens $0.27-$0.28 most cases.

This week was an interesting one when it comes to new crop mustard.  Brown mustard new crop pricing has jumped with concerns about acres being planted. Spot Brown mustard now sits at $0.32/lb FOB for February to March pickup and as high as $0.33/lb for April to June.  Yellow is sitting at $0.40 cents FOB farm for February to March movement. Oriental Forge variety sits at $0.29 for Feb. to March movement, while Cutlass Oriental is now steady at $0.27 FOB for that same window.  New crop brown is seeing $0.34/lb contracts being offered for the September to July period. New crop yellow is sitting at $0.42/lb and oriental as high as $0.30/lb for the same time period.  Please call us to discuss all your new crop and seed options. We have all varieties of seed, either treated with 2 treatments, or un-treated and our prices include delivery to your yard.

Barley prices haven’t taken a major swing in either direction this week with FOB bids ranging from $4.25-$5.00/bu picked up depending on location and movement. New crop feed bids are also attractive and being indicated in the $4.00-$4.50/bu range pending location. Analysts are predicting an increase in barley acres considering the strong values. If you are putting some barley in the ground this year, consider locking some in. It can check the box for a profitable early cash flow and bin space crop. Other things to consider: if China and Australia find a truce, Canada’s domestic barley price could go down. Suspect new crop malt needs to be $0.75/lb over the feed market to justify locking in. Russia’s government announced this week that they would be implementing a barley export tax of US $30/tonne starting mid-February until the end of June. Locking in 50-75% of barley sales will take some risk off the table.

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 9, 2020

Following the most recent StatsCan report last week, flax prices remain sideways since there was no major surprises in latest production numbers. You can still capture $18.00/bu picked up on flax for movement out to March, with the possibility of slightly higher for movement out to June. New crop ranges from $14-$14.25/bu picked up with an act of God.  Yellow flax markets are a little less aggressive on the buying end of things, but prices range from $18.00-$20.00/bu picked up. Chinese flax imports were 26,000 tonnes in October which is above the 5-year average, however Canada only accounted for 1,300 tonnes. We are likely to see those numbers increase once the exports arrive overseas in the next couple of months. The demand continues for flax, but there are key growing areas overseas that will eventually find their way into the global market, in the meantime Canadian prices will remain supported.

This week the pea market hasn’t seen much change. With StatsCan confirming that green pea production is 30% more than last year and yellows only 4% larger, we have seen the price gap between greens and yellows narrow. China remains to be the dominant pea buyer of mainly yellows which is holding yellow pea pricing strong. Current pricing on green peas has softened to $9.50 – 10.00/bu delivered. Yellow peas are $9.25/bu delivered ($9.00/bu picked up in certain areas) and maple peas remain stable at $10.00/bu picked up. China’s buying may have slowed down to a more reasonable pace but it’s still looking like yellow pea stocks could get low if China stays in the market. This could provide more room for yellows to strengthen in as the year progresses. Again, we do have all our eggs in one basket here *(Chinese demand), so it may be a good idea to get some of the risk off the table with current yellow pea prices at a historical high.

The feed wheat market remains strong throughout the Prairies this week. Bids are readily available between $6.00 to $6.50/bu picked up depending on your location for shipping pushed out into the new year. The odd buyer does pop up with room to take product prompt, but those windows are largely closing. The closer you are to feedlot alley, the better the values look as is the case most of the time.  Milling wheat prices are not much better than feed at the moment and bids hover in the $6.50 to $7.00/bu delivered range based off of #1 quality and 13.5% protein. This week we’ve traded some new crop #1 durum for $8.25/bu FOB farm in SE Sask with an October through December delivery window. If you are looking for the most up to date prices in your area, please call your Rayglen merchant.

After January canola futures saw a big jump up last week on reported lower Canadian production, and we have seen them fall back slightly. Currently we are sitting at $583/MT, which compares to $589/MT at time of writing last week. Much of this weakness is due to losses in soy futures over the past couple weeks triggering some profit taking sales in Canola. March futures are still lower than January and currently sit at $579/MT.

The oats market has been particularly strong for this time of year as of late. Many buyers that are usually pricing into summer at this time of the year have use for product in nearby months; in nearby weeks even in some cases. We have triggered targets in strong freight areas (Southeast Sask) as high as $3.75/bu picked up on yard for #2 milling oats. Further North the numbers are not quite as aggressive but still impressive, nonetheless. If you haven’t sold much to date, it’s time to consider making additional sales while the iron is hot. Fall 2021 prices should be on your radar today as well, as values are up to $3.25/bu picked up on farm East of Saskatoon. This is a very solid number to get some risk off the table on sales and storage for next year’s production.

Not much new to report in the barley field as prices are flat compared to the week previous. We’ve seen $4.25 – $5.00/bu FOB trade depending on the area, with the higher numbers being closer to feedlot alley. Rumblings of some $6.00/bu malt barley prices are afoot if you want to sit on it for April – July delivery. Given the fluctuation in temperatures as of late, make sure to monitor your bins and do random germ checks to ensure that your quality is still holding up on a malt scale. No big pricing guarantees for production contracts on the malt side of things but there is some $4.50 – $5.00/bu feed bids out there. If these numbers are jumping out at you, our opinion would be to stay away from a feed variety barley and plant one of the newer varieties whether it be Synergy, Connect or even Bo. Given what these have shown on the yield side of things, at the end of the day if it makes malt then that’s great and if not, the feed market is still strong and puts some money back into the farm’s pocketbook.

Chickpeas are getting mixed signals from StatsCan and Sask Ag, with uncertainty in the supply/quality of this year’s production. It is reported that Australian production is up slightly from 708K MTS to 737K MTS. Earlier strength in chickpeas prices out of India were believed to trigger higher seeding and have now backed down to usual prices. Higher seeding could lean more pressure on values if the production is average. While several buyers have backed their bids off by $0.03-0.04/lb,  a #2 large kabuli bid of $0.30/lb delivered plant can still be found in the market. Feed prices have also slumped a little with trades occurring around $0.12/lb off the farm. Desi’s have also come up in conversation from the buyer’s side but no reference to value. Call if you have inventory and we can get to work on price discovery.

Argentine workers strike, retreating fund selling and tapering South American rains have all offered a little stability to soybean futures. Local soybean bids now hover around $12.50/bu picked up depending on location. Export faba bids remain rare, due to increased production out of Australia. Feed faba bids are near $7.00/bu FOB farm, location dependent. North American dry bean production has increased sharply year over year. Harvest delivery pressure is beginning to subside, and some early Mexico export demand has come to some of the specialty classes. New crop dry bean bids are soon to be released. Contact Rayglen if you are interested in new crop.

Lentils continue to feel the pressure from overseas markets. With all the information being published in the last couple weeks from around the world, the marketplace has lost its urgency to fill contracts at high prices. No one ever knows where the markets are going to end up but locking in profit is always a win. It was this time last year we started to see a little upswing in reds and that continued until early this fall. The world loaded up on lentils to get coverage, now the market has comfortable supply with more to come. This has put a bearish tone on the markets as a supply shortage risk is limited. There are really only three unknowns left out there that will change the market’s perception; 1) quality of the Australian crop, 2) how many acres will India actually get planted; early reporting says lentil acres are up this time last year, 3) what will be the quality of the crop be?  Today’s price on red lentils is still trading between $0.23-$0.24/lb FOB farm, large greens at $0.32-$0.33 FOB farm and small greens hover around $0.27-$0.28 in most places. Looking at these markets through a zoom lens makes it hard to see the whole picture, zoom out and look at everything to help you with your marketing decisions.

Little has changed in canary seed pricing as bids continue to hold firm at $0.32/lb picked up on the farm for Jan. to March movement. Pricing for this year has extended beyond last years thirst which trailed off in October and ended with no real seasonal spike in late Winter. This year, values have remained quite strong from the get-go and continue to quietly hold their own. Down the road we may see a price perk should exporters not have enough coverage for Spring sales. Are we trading higher or lower though further out? Time will tell. There have been some inquiries in regard to new crop pricing. Right now, there are no firm bids from buyers so if you have a target in mind, give your Rayglen Merchant a call.

This week we saw fairly steady prices after the reaction to the StatsCan report last week. Brown mustard remains a good story as buyers continue to show strong bids. Firm pricing remains around $0.32/lb FOB for February to March pickup and as high as $0.33/lb for April to June.  Yellow is sitting at $0.41/ln FOB farm for February to March movement also. Oriental Forge variety sits at $0.28 for Feb. to March movement, while Cutlass Oriental is now steady at $0.27 FOB for that same window.  New crop contracts are starting to be signed at a good pace. Please call us to discuss all your new crop and seed options. We have all varieties of seed, either treated with 2 treatments, or un-treated and our prices include delivery 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 December 3, 2020

Some really aggressive pushes in the feed wheat price had bids elbowing above #1 milling for a short period this week but reports of corn coming up from the US into feedlot alley knocked prices down from the highs of $6.50/bu picked up. Most areas will still catch $6.00/bu, or better, picked up on yard this week, which is nothing to scoff at for feed values. Milling wheat prices are definitely not as shiny priced as feed with many buyers not showing bids much better than feed. Our current indications for a #1, 13.5 protein are around $6.50 to $6.85 delivered to elevator with the better prices pushed out further into late Winter/Spring. We have seen some durum prices floating around at mid to high $8/bu range with some talk of $9 delivered to elevator into summer months as a possibility coming down the pipeline. We will keep an eye on this market to see how it unfolds as the durum production was strong this year in Canada.

Flax prices remain unchanged this week as StatsCan issued its estimates of total production and yield.  It was no surprise to see that flax production was down 1.8% from last year, and those with product in the bin are still able catch $18.00/bu picked up with movement out to March / April. New crop contracts are available, with bids hit and miss at $14.00/bu FOB farm. Some reports out of Kazakhstan show that their flax crop is up slightly from the previous year, but this still remains the biggest unknown.  If these reports are reliable, that would mean a slight increase of available supplies for export. The logistical issues into China from Kazakh are due to Chinese phytosanitary inspections. This hasn’t changed Kazakh flax from being pulled into the EU and sizable stocks overseas will find their way into the market.  When that happens, we could see Canadian prices come off their highs, but with lower stocks and Chinese demand, prices should still find support.

Canaryseed markets continue down their path of righteousness this week with bids still historically high, coming in at $0.32/lb FOB Farm for Jan.-Mar. delivery.  StatsCan’s report didn’t have any major surprises either, with an estimated decrease in total production just over 8%. This smaller production number would correspond with the increased values we’ve been seeing. Could supplies get tight come July? We suppose time will tell, but it feels like availability of canaryseed is starting to thin out. What remains unknown is how many bins of unreported canary remain on farm. At these values, we suspect many growers have moved to the sell side, so some of the 5+ year old supply may be dwindling. This could potentially mean higher values down the line, but also recall the low to mid 20 cent bids that were around for so long. Is the small upside worth the 10-cent downside risk?

Despite a 3.4% reported increase in barley production over last year, markets continue to climb this week. In case you weren’t already paying close attention, new crop bids have emerged with some pretty attractive numbers. Old crop ranges from $4.50/bu -$5.25/bu in Saskatchewan and $5.25-$5.75/bu in Alberta; best values are seen as you move West towards feedlot alley. All bids are quoted as FOB farm for delivery in the 1st and 2nd quarter of 2021. New crop bids range from $4.00/bu-$5.00/bu FOB farm pending location without an Act of God. Again, pricing gets better as you move West towards feed lot alley. With China still on the outs with Australia as well as rebuilding their pork economy, they are continually looking to Canada to keep the pipeline of barley coming. There is no indication when this proverbial tap might be turned off, so recommendation is: sell on the way up with 50-75% sold.

Reported reduced acres on chickpeas will not have a major effect on the chickpea market. Oversupply from previous years and lack of demand on a global scale have markets in a slump that is desperate for some life. All parties from buyers to sellers agree that a return to a somewhat “normal” life will be the only thing to spark life back to chickpeas. Celebrations, eating out & dinner parties will be a catalyst for returned values. Marketing stance continues to be to hold out. If your position is a “need to sell”, values range from $0.28/lb to $0.30/lb FOB farm and a bit more value in larger sizes. Feed prices have also seen a bit of weakening as the pet food markets have filled their boots for the time being. Bids hover around $0.16/lb FOB farm.

The only colour of peas buyers seem to be showing interest in this week are yellows as bids come up slightly. Greens have softened and Maple peas have remained stable with both not seeming to have much demand strength behind them. Current pricing on yellows are $9.25/bu delivered, green peas are $10.00/bu delivered and Maple peas are $10.00/bu picked up. Just as expected, StatsCan numbers that came out had peas increasing by 8%, which shouldn’t put too much pressure on the market. We still have China as our main buyer, and they are the ones driving this yellow pea market. As long as trade relations remain positive there, then the yellow pea market stays favorable. It may not be a bad idea to hedge against some risk, as movement keeps getting pushed out further into the new year. We don’t have a lot of buyers looking to sign up new crop pricing just yet, but a few numbers have been thrown around. If interested, call for details. 

Soybean futures rebounded this morning after three consecutive days of losses and forecasts of rising soybean usage rates in China. Rains in Brazil and Argentina capped the morning’s gains. Local soybean bids now hover around $12.50/bu picked up depending on location. Faba bean export quality bids are scarce due to a return to typical global production levels and typical trade patterns. Australia’s faba production is forecast to increase 23% over last year to 516,000 MT. Feed faba bids hover near $7.00/bu FOB farm, location dependent. North American dry bean harvest has largely concluded, and production numbers are up. The US has a 67% production increase over last year’s abysmal harvest and Canada had a 55% year over increase to 490,000 MT. Harvest delivery pressure is beginning to subside and some early Mexico export demand has come to some of the specialty classes. New crop dry bean bids are soon to be released. Contact Rayglen if you are interested in new crop.

Milling Oats continues riding a bit of a hot hand this week as we’ve seen $3.75/bu picked up on the farm trading for the month of December; give or take depending on farm location and the closer to Manitoba, the better. The window is very narrow to ship for the rest of this month but if you need to move a few loads for bin space or cash, this is a solid option as pricing holds firm. Comparatively last year, we were flirting with these prices in Jan./Feb. If you are looking to move some Oats in the new year, give your Rayglen agent a call for pricing in your area. On the feed side, things are still pretty tame as trading is happening between that $2.50 – $2.75/bu range. Last but not least, the Stats Can report stayed pretty true to earlier predictions that Oat production was higher (roughly 8%) based on increased harvested acres, offsetting this year’s lower yields (-3.9% to 91.3bu/ac). With the strong milling prices that we are seeing it’s a good play to have locked in some solid tonnage.

January Canola futures are up big this week and at time of writing sit at $589/MT. This has increased $11/MT from the middle of last week when we were seeing $578/MT. After a week of mostly sideways trading, the futures took a big jump today with the StatsCan December production report being released. New estimates have Canadian Canola production at 18.72 MMT, compared to September’s estimate of 19.39 MMT. While this decrease wasn’t a surprise to most after the heat blast much of the Prairies saw in July, it creates concerns of a supply shortage in Canada as the crop year progresses. Futures remain inverted, with March and May each at $583/MT and $578/MT.

Today the StatsCan report is showing a pretty sizable decline in this past year’s Mustard crop. 99,000 tonnes is being reported, down just over 26% from 135,000 tonnes in 2019. We are already seeing some small gains in pricing, especially in Brown.  The bid is up to $0.32/lb FOB for Feb. to March pickup and as high as $0.33/lb for April to June.  Yellow is sitting at $0.41/ln FOB farm for Feb. to March movement also. Oriental Forge variety sits at $0.28 for Feb. to March movement. Cutlass Oriental has bumped up a penny to $0.27 FOB for that same Feb. to March pickup window.  New crop contracts are being signed at great values historically. Please call us to discuss all your new crop and seed options. We have all varieties of seed, either treated with 2 treatments, or un-treated and our prices include delivery to your yard.

The red lentil market continues to lose ground with the news of a big Australian crop and India planning to plant a larger number of lentils this year. There are also rumors floating around that India will likely increase the tariff again at the end of the month. If true, this will mean reds continue to struggle into the early part of next year. India will now be a buyer of Australian lentils and depending on the size of that crop it may carry them through until Indian production is off and ready to be sold.  StatsCan’s final yield estimate came out today and this will also likely hinder lentil sales. The final yield estimation for lentils is as follows: Reds – 1.736MMT in Saskatchewan with a total 2.042MMT in Western Canada. Green lentils – 549,000MT in Saskatchewan with a Western Canadian total of 602,000MT. Small green lentils – 180,000MT in Saskatchewan and 186,800MT in Western Canada.  This week reds are trading between $0.24-$0.25/lb FOB farm, large green lentils between $0.32-$0.33/lb FOB farm and small green lentils as high $0.30/lb 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 25, 2020

StatsCan production estimates are going to be released next week and peas are expected to come out slightly higher from the last estimate, however this will likely have little impact on our pricing. Our Canadian bids continue remain firm, which confirms strong demand, but we are seeing a small drop in green values. Yellow peas are at $9.00/bu delivered, while green peas pull back slightly to the $10.00/bu delivered range. Maple peas remain unchanged at $10.00 – 10.50/bu picked up. As per reports, the Black Sea Region’s pea prices are at multiyear highs due to their supplies being tight which is causing their domestic processors to bid aggressively. With the Black Sea Region’s supplies being tight we are also expecting their export to slow later into the marketing year. Therefore, if China continues buying at a steady flow our Canadian pea prices should remain firm.

Flax pricing is holding out so far this week, unlike other markets that have significantly softened. If you don’t have any flax on the books yet, signing some up at $18.00/bu FOB for a March/April type movement is still possible. New crop is still lingering around $14.00/bu picked up. Canada no longer dominates the flax market, so the prices aren’t as straightforward as they were 10 years ago. We have seen Canadian supplies shrink in the last five years, but the Black Seas Region has filled that gap which has kept prices from rallying. The disruption of the flax supply in the Black Sea Region has the prices for Canadian flax at an all-time high. If the disruptions overseas are purely logistical then we will see a correction in the market. As always, we have some seed suppliers for those looking for new seed or if you want to put some acres in for 2021.

The feed barley market has shot up a bit this week with prices in West Central Saskatchewan trading around $5.00/bu FOB farm again. Those in the extreme Southwest have been able to capture values over that mark, potentially up to $5.75/bu. We have seen some interest in Eastern SK barley this week as well. At least one buyer has hinted that $5.00/bu FOB farm may be attainable, so make sure to have your offers in place. The malt price remains relatively unchanged based on grower reports and remain similar in value to feed. As has been the case for most of this year, it might not be a bad idea to consider selling malt into the feed market for quicker movement and no concern over grading issues.

The canary seed market has been holding strong this week and we are still getting some trades on the books for the first part of 2021 at $0.32 /lb picked up on farm. If you prefer faster movement than 2021 we have buyers that could likely still get a truck in the yard for this year at $0.30 to maybe $0.31 cents FOB farm, but that window is getting pretty tight as often movement is halved or less in the last 2 weeks of the year. Most buyers will need to see pre-shipping samples on the canary as well so they can ascertain if your product makes the nil-inseparable Mexico market or needs to be diverted to other, less picky, countries. Still no new crop values to report for canary at this time; strong values are likely to encourage some acreage expansion, but overall market firmness will most likely keep any one market from getting too inflated. There may be some incentive for buyers to encourage growers to plant canary.

The feed wheat market is heating up this week with trades taking place as high as $6.50/bu FOB farm on the West side of Sask. and up to $6.35/bu in the Southeast. For a quick reference, this time last year feed wheat was priced around $4.80/bu bushel. Other than price, the other major difference was last year’s wheat was feed quality, where a lot of this year’s wheat is #1 or # 2 but has low protein. The spread between feed and milling quality is minimal at this point and in comparison, bids for milling wheat with 13.5% protein are indicated around $6.75 delivered. This feed market is very attractive for any one with lower protein, #2 quality or is just outside of a realistic delivery range to the millers. Wheat, just as the elevators, doesn’t seem to be able to compete right now.

The red lentil market is really feeling the pressure of the Australian harvest as prices have dropped to $0.25-$0.26/lb FOB farm. The red market will likely remain quiet now until after Christmas, and it may be even longer if the size of the Australian crop is as big as expected. Large green lentils have also felt some downward pressure as prices have dropped a cent or two over the last week. The average bid is around the $0.35/lb mark. In the last week we’ve had a couple buyers looking for French green and black lentils. So, if you’re one of the few with product, give us a shout to discuss pricing. Next week the final crop numbers will be released, and analysist are not projecting any major surprises to come out of the report. What the report may provide is a better breakdown on the production on the different classes of lentils. Expect markets to remain sluggish until we get a better understanding of the actual size of the Australian crop and seeding progress in India.

Chickpea markets have switched from talking about today’s values to starting to focus on the potential for new crop. Lower values over the last couple years have resulted in lower acres but this has yet to translate to higher values. The main supportive factor has been referred to as “wounded demand” and put COVID as the sole factor. Less celebrations, less eating out, less demand. The market expects a turnaround of this suppression when a vaccine is readily available. Until then, there will be peaks and valleys to support sales, but a firm increase in the market for any significant period of time is debatable. Bids range from $0.29-$0.30/lb FOB farm on #2 quality min 20% 9mm and have seen slightly higher trade on offer. No indication on new crop levels yet but don’t discount the opportunity to put an offer in and test the market.

Oat production was a little less bountiful than expected and as such, we’re seeing some solid prices in the market. This week milling bids are pulling in at $4.25/bu delivered for Dec. – Feb. movement. This has translated to an equally solid FOB price sitting around that $3.60/bu range on farm pending location. The closer you are to Manitoba the better. Call your Rayglen agent if you are looking for movement and price specifics in your area with a pricing target being a great option. Just a reminder though, with Christmas around the corner the shipping window for December is tight. Some more good news for oats has been the solid trade that’s taken place with the US as we’ve far surpassed what’s been done the last two years. However, it’s worth keeping an eye on European oats and whether the Americans import from them down the road which would lead into some downsized demand for Canadian product. On the feed side, prices continue to hover around that $2.40 – $2.70/bu range. We may see oat prices pull up a bit as buyers may look to offset barley with other feed substitutes… stay tuned.

News of waning Chinese export demand from the U.S. has softened futures markets. The offsetting bullish news is the continued dry weather in Brazil and an Argentinian Oilseed Workers Labour dispute. Local soybean bids now hover around $12.25-$12.50/bu picked up depending on location. Faba bean export quality bids are scarce due to a return to typical global production levels and typical trade patterns. Feed faba bids are in the range of $6.50-$7.00/bu FOB farm location dependent. North American dry bean harvest has largely concluded, and production numbers are up. The US has 67% production increase over last year’s abysmal harvest and StatsCan will confirm Canada’s production on Dec 3rd next week. Harvest delivery pressure is beginning to subside, and some early Mexico export demand has come to some of the specialty classes. New crop dry bean bids are soon to be released. Contact Rayglen if you are interested in new crop.

Mustard demand still dominated the talk this past week and slow shipping, especially to Europe, continues. That being said, new crop contracts are being signed at great values historically. Please call us to discuss all your new crop and seed options. We have all varieties of seed either treated with 2 treatments, or un-treated and our prices include delivery to your yard. Spot bids today are steady sitting at $0.40/lb FOB farm for yellow with a delivery window of Dec./Jan. Brown has been showing some signs of strength and the bid sits at $0.31/lb FOB for Jan./Feb. pickup. Perhaps an offer higher might be a good idea at this point. Oriental Forge variety sits at $0.28/lb for Jan./Feb. movement. Cutlass Oriental is sitting at $0.26/lb for the same new year shipping.

Despite a bit of a downfall yesterday, January canola futures are once again up week over week. At time of writing they are sitting at $578/MT, compared to $569/MT at the same time last week. The story hasn’t changed much as dryness in Brazil and Argentina is leading to soybean futures rising which in turn, leads the way for canola futures to follow behind. Many eyes now turn to the next StatsCan production report, which will be released on December 3rd. The September StatsCan report had Canadian canola production pegged at 19.4 MMT. With the strong exports we’ve seen so far, if that number was to drop below 19 MMT we can expect supplies to tighten at the end of the marketing year and prices to stay strong.

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 18, 2020

Pea prices in China continue to move higher and recent reports state yellow pea bids are at their highest since 2016. China has been the dominant buyer of Canadian peas and remain to be the key player in driving/supporting this market. Current pricing on peas hasn’t fluctuated much since last week; yellow peas are $9.00/bu delivered, green peas are $10.50/bu delivered and maple peas are $10.00/bu picked up. We do have a market for Acer variety maple peas at slightly higher values, with some areas able to capture $10.50/bu on farm. Most pea movement is now pushed out into the new year, with some buyers showing delivery out until March. If you have a target price in mind or are looking to get into some new seed for next year, let your merchant know.

Wheat markets continue their sideways to lower trend this week, with not a lot of upside expected in the near future. Australia and Argentina are both harvesting wheat at the moment, reminding us – regardless of the time of the year, wheat is usually being harvested somewhere in the world, leaving supply shortages tough to come by. Canadian prices are a bit soft on the wheat side with HRS seeing bids below $7.00/bu delivered. There is the potential for higher protein product (~14%+) to capture $7.00/bu delivered to plant in some locations. Feed wheat/durum, however, are still staying strong with multiple areas seeing bids of $6.00/bu or better picked up on farm with no dockage being deducted. Milling durum is priced at $8.00/bu, to slightly higher in some areas, delivered plant.

The canaryseed market has seen a rebound this week, managing to claw its way back to $0.32/lb FOB farm for February/March movement. We are actively trading these values in most locations, so if you missed the boat on the first go-round, now is your chance to hop on board! We have also seen some options available for quicker movement at $0.30-$0.31/lb FOB the farm; strong values for those needing cash before March. Although we are seeing stronger bids this week, we don’t necessarily see it as a sign of more strength to come, but rather as buyers trying to cover some sales. If you are holding out for better values on canaryseed, targets are always an option.  Thus far, buyers aren’t interested in pushing bids higher. Our suggestion: hedge the downside. We are seeing record values right now and corrections downward usually aren’t a penny at a time.  We have not heard of a new crop price yet as of late but expect to start seeing bids in the new year.

The feed barley market remains flat this week with product consistently trading between $4.50 to $5.00/bu FOB the farm. The closer you are to Southwest Sask. and into Alberta, the better the price will be, as most product continues to head West. Although not comparable to the highs we’ve seen this year, these are still really good prices for feed barley and even malt in some cases, considering the almost nonexistent spread in value. Making some incremental sales at these levels looks to be a good play at this time.

Flax prices remain similar to last week and in some cases, growers are still able to catch $18.00/bu picked up on brown flax if movement is out to March. New crop pricing remains in the $14.00/bu FOB range.  Commercial inventories are the largest since 2014/15 with stocks rising in Thunder Bay and Vancouver. In order for the EU to maintain supplies, imports will need to be up 4% from last year according to analysts. However, the estimates of the 2020 crop are still wavering. The Black Sea Region exports were higher in September compared to the last two years, but the actual size of the Russia / Kazakh crop will provide more indication over the next couple of months. Canadian flax prices are nearly at an all time high, this is in part due to some disruption in the Black Sea Region. Whether that’s due to logistics or poorer crops is still the unknown. If the issue overseas is logistics, then there is downside risk for the Canadian flax prices. Make sure to have some flax locked in, there is too much on the table to be taken away.

Lentils continue soften with price dropping a cent or two since last week. Early reports out of Australia suggests that their lentil crop will be of good quality and decent yields. This will hinder Canadian sales into destination ports as cheaper shipping costs out of Australia become available. It also looks like the Australian market underestimated last year’s production, which on paper states Australia should be out of lentils, yet they continue to ship product. Right now, early estimation on this year’s crop is 1 million tonnes, but if forecasting is off like last year, that could go as high as 1.3 million. We suspect these reports could have something to do with prices softening the last couple of weeks. Bids today are as follows: Red lentils $0.27-$0.28/lb delivered; Large green lentils $0.35-$0.36/lb picked up; Small greens $0.30-$0.32/lb delivered.  At this time no new crop pricing has been released by any of our buyers.

Mustard demand is likely to remain fairly slow with Covid restrictions really weighing on the issue. Buyers continue to report to us that overseas demand remains very sluggish. This could change rapidly as things improve, but obviously there are issues with the pandemic ongoing. Bids today are steady sitting at $0.40/lb FOB farm for yellow with a delivery window of Dec./Jan.  Brown sits at $0.31/lb FOB for Jan./Feb. pickup and Oriental Forge sits at $0.28/lb for Jan./Feb. movement. Cutlass Oriental is sitting at $0.26/lb for the same new year shipping. New crop mustard bids have arrived so that is very exciting, and bids are strong. Please call your merchant for the latest in prices and movement. Also, seed sales are underway, we have many varieties, treated or untreated and sales include free delivered to your yard.   

Oats seem to be holding steady here this week as prices haven’t varied to much from last. Milling oat bids are maintaining around $4.00/bu delivered with movement into the new year and onwards. If you have dry and heavy feed oats, look for pricing to come in around that $2.35 – $2.70/bu range with the latter price being location specific for different buyers. Also, offers are a handy way to get the word out that you are looking to market some grain so give your Rayglen agent a call and they’ll be happy to help you out.

Soybean market remains fueled by the fusion of dry weather in South America, diminishing U.S. stocks and healthy Chinese demand. Local soybean bids now hover around $12.25-$12.50/bu picked up depending on location. Faba bean export quality bids are scarce due to a return to typical global production levels and typical trade patterns. Feed faba bids are in the range of $6.50-$7.00/bu FOB farm, location dependent. North American dry bean harvest has largely concluded, and production numbers are up. Harvest delivery pressure is beginning to subside, and some early support has come to some of the specialty classes. New crop dry bean bids are soon to be released. Contact Rayglen if you are interested in new crop.

January canola futures have done nothing but go up in the past weeks and currently sit at $569.40/MT, compared to $559/MT at time of writing last week. Solid gains, leading to highs we haven’t seen in years with soybeans and soy oil, are offering support to the canola markets. Strong technical signal and export numbers are also helping bring the January futures up to numbers we’ve only seen once in the past 5 years. There is currently no carry into the March and May futures as they both sit at $569/MT as well.

The chickpea market continues to simmer a bit this week as prices are indicated around $0.30 to maybe $0.31/lb on across the board sizing. For larger sized product, over 80% 9mm, we have some buyers that will pay a few cents premium, but bids, for the most part, are not heating up with just very little buyer interest to date. It’s possible that part of the lackluster market interest is the small sized product that we have produced this year. It just does not draw the same interest from the end users as larger caliber product does. If we see some slowdown in the Russian export market, which is expected due to a supposedly smaller crop, we might see renewed overseas interest in Canadian origin chickpeas. The hottest thing in the chickpea market right now is increased interest in sample or feed quality product. We’ve seen bids in the low twenties, $0.23 to $0.24 range, being firmed up in recent weeks.

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 12, 2020

Flax prices have stabilized for the week and although there is still the odd opportunity to capture $18.00/bu picked up on farm for brown flax, many buyers have reverted to $18.00/bu delivered. New crop brown flax is hit and miss at $14.00/bu picked up with an act of God this week and we suggest growers use firm targets to try and secure a contract. Spot yellow flax values have backed off to the $20.00/bu FOB range, while new crop bids remain pretty slow. If reports that the Black Sea Region supplies are bottled necked due to logistics, then we could see some downside on flax pricing once those issues are sorted. Under Kazakh law, sellers are able to declare non delivery of their product and just pay the interest charges.  As the market rallies there, sellers are taking that route. With smaller Canadian supplies, we could also run into demand rationing from buyers if prices continue at these levels.

Mustard is basically at the same levels it has been for a while and perhaps as time grinds on, prices will start to edge up slightly. It feels as if it should move up with the reduced acres, but time will tell as offshore shipping remains fairly stagnant as reported by buyers. Bids today are steady sitting at $0.40/lb FOB farm for yellow with a delivery window of Dec./Jan.  Brown sits at $0.31/lb FOB for Jan./Feb. pickup and Oriental Forge sits at $0.28/lb for Jan./Feb. movement. Cutlass Oriental variety remains discounted at $0.26/lb for the same new year shipping. It may be time to look at new crop mustard. New crop contracts and seed have started to trade, please call your merchant for the latest in prices.

The pea market had a bit of excitement this week when greens jumped to $11.00/bu delivered for a short one-day rally but have since softened back down to $10.50/bu delivered. Yellow peas had a few options at $8.75 – 9.00/bu delivered, also showing a bit of life. Maple peas remain stable at $10.00 – $10.50/bu picked up. Reports suggest the bulk of our pea exports are destined for China with much smaller quantities being shipped to Bangladesh and Cuba. Although it is still early, India’s planting for the 2020/2021 pea crop is reported to be 11% ahead of the 5-year average. New crop values have yet to surface for the 2021/2022 marketing year, but if you have a target price in mind let your merchant know.

Canaryseed markets remain unchanged this week with bids ranging in the $0.30-$0.31/lb range FOB farm, pending location and delivery window. For now, it seems the highs of $0.32/lb are no longer attainable and demand has slowed slightly, but grower targets are always an option to try and catch those values. News around this commodity remains scarce and seemingly underreported, so for now, we don’t have too much to say other than values are in the high end of trading ranges compared to only a few short months ago; hedging the downside risk on some of your product is likely not the worst play right now.

Chickpea markets are showing some activity with a little bit of trade this week. The latter part of last week had buzz for #2 or better Kabuli’s with a $0.33/lb FOB farm bid, but this was a “fill and kill” situation that was short lived. We are still seeing strong interest in chickpeas grading below a #2 this week as well. Bids range from $0.23/lb to $0.25/lb picked up on the farm for movement in the next 60 days. No discussion yet of 2021/22 values as buyers are still trying to figure out what is in the bins from previous production years. If you’re in the market to switch seed or want to discuss possible marketing opportunities, please call the office.

There seems to be a little upside starting to trend on milling oats right now as prices have turned more positive. Though that positivity is stretching more into the new year with little upside gain for nearby movement in 2020. Look for milling oat values in that $4.00 – $4.25/bu delivered into Manitoba. Call your Rayglen agent for location specifics and/or FOB farm bids as there may be a price perk for your area. Not too much has changed in the way of feed prices as bids still seems to be hovering around that $2.25-$2.50/bu picked up on the farm.

Lentils markets seem as though they have hit their tipping point this week. Large green and red lentils have slipped slightly in value, while small greens seem to be stuck at the $0.32/lb delivered mark.  Large green lentils lost a cent or two with only a hand full of our buyers now quoting $0.37/lb delivered and some with bids as low as $0.35/lb delivered. Red lentils saw a penny loss this week as well with $0.29/lb delivered looking like the high. Similarly, to large greens, reds are seeing lower prices being bid out there, so it may be a good time to catch these values while you still can. Lower grade lentils (#3/sample/feed) are being bid at $0.25/lb, an attractive value for growers with that quality on farm.

The wheat market is holding consistently as of late with feed bids still catching $6.00/bu FOB farm in most areas of Saskatchewan. Movement in many cases is in the first months of 2021 but with the standard slowdown at Christmas time, 2021 is just around the corner. Prices on milling wheat are showing only around $6.50 to $6.70 delivered to plant for early in 2021 for many buyers right now so there is obviously not much of a push beyond the feed price there. Those milling bids would be on a #1 CWRS with min 13.5% pro and a $0.30 discount on 12.5% protein quality product. The world wheat stocks remain decently supplied even with the most recent USDA showing slightly lower US numbers. Durum prices are carrying a fair premium to milling wheat these days with most areas showing a #1, 13.5% CWAD at $8/bu or a little stronger delivered in. 

Feed barley markets has levelled off after a decline over the past couple of weeks. Prices have settled in around the $4.40-$5/bu FOB farm range for movement into the new year. The biggest factor in price is location, with the best pricing being closer to southern Alberta. While this is down from the highs we were seeing a month ago, these are still very profitable numbers that are worth taking a look at.

Canola markets have had a strong week with the January futures reaching another new high for the year at $559.90/MT at time of writing. This compares to last week, when they were as low as $535/MT. Much of this strength came from Tuesday’s USDA report cutting soybean production by 98 million bushels, thus tightening stocks even more so than before. There’s a small carry into the March futures as well, which currently sit at $563.20/MT.

Profit-taking and resurging COVID-19 concerns are weighing on futures. Losses are limited by strong Chinese demand, dry weather in Brazil, and a shrinking U.S. crop in 2020. Local soybean bids now hover around $12.25/bu picked up depending on location. Pending Australian faba bean competition is looming over Canadian export prospects and resulting in scarce export bids. Feed faba bids are in the range of $6-$7/bu FOB farm, location dependent. North American dry bean harvest has largely concluded, and production numbers are up. Harvest delivery pressure is beginning to subside, and some early support has come to some of the specialty classes. New crop dry bean bids are soon to be released. Contact Rayglen if you are interested in new crop programs.

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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