Flax prices have no major changes this week. Milling quality hovers around $14.00/bu FOB into summer months, while #1 prices vary between $12.25-$13.00/bu picked up. Yellow flax bids are quieter with the odd $16.00/bu FOB for further out movement. Shrinking supplies of Canadian flax are giving Canadian prices some support, however there is continued heavy competition from Russia and Kazakhstan. The old-crop carryover will make up mostly of lower quality flax, most of which hasn’t been harvested yet. New crop flax bids are hit and miss but still some opportunities available. The USDA is forecasting a drop in acres from last year. Seasonal gains on flax prices are still possible in the short-term according to analysts, but the long-term outlook will likely remain steady.
The pulse market had quite a bit of activity over the past week, with peas only seeing a small part of the action. Yellow peas edged a bit higher in price, which has promoted movement into the market again. We have been trading $7.50/bu delivered on yellow peas, therefore, $7/bu FOB and in some cases slightly better has been workable. Green peas are holding same as last week at $10.50/bu FOB. Big question we are going to see, “when is movement needed?” Seeding is just around the corner and we are going to have growers wanting to see trucks before the busy season starts. Forecasting new crop acres has begun and we are expecting a 2% increase, as per reports, with this increase mainly shifting into green peas. Current new crop bids are $6.50/bu delivered on yellow and $9/bu delivered on green peas. The oversupplied maple pea market is still quiet, with old crop trading at $8 – 8.50/bu delivered. New crop bids have been seldom.
There is a lot of panic these days due to Covid-19 and stock markets have been reflecting that. Luckily our commodity markets have held up relatively well. We remember that people and animals must eat and that is likely part of the reason why the wheat markets remain stable. With that being said, feed wheat prices have been bid around $5.00/bu FOB across the province this week, with some higher values seen in good freight locations. Delivery is pushed out to summer months in some cases, but you can usually find a better value for holding on. Road bans will be coming on shortly if they have not already, so please be aware of how much you can ship out on a truck. The durum price has been fairly strong over the past little while as well, with bids around $8.00 /bu FOB on a milling quality. Please call your Rayglen merchant for the most up to date prices in your area.
It has been a big news week in the Canadian canola markets. Reports came out that made it sound like China was completely opening its markets back up to Canadian canola, when in fact this is not the case. It was actually a statement that canola trade between the two countries will continue as it has been for the past few months, meaning limited access. They will continue to require canola shipments contain less than 1% foreign material, compared to the previous benchmark of 2.5%. At time of writing, May futures are sitting at $465/MT, down slightly from the same time last week when they were at $467/MT.
Chickpea markets unchanged this week. It is expected that the acres will be down in the coming seeding season but will still be considered up on average. USDA and Mexico are both reporting average 33% reduction in acres, which could help the market. Old crop large chickpeas #2 or better max 10% 7mm trading around $0.25-$0.26/lb delivered facility. New crop unchanged with bids ranging from $0.21-$0.23/lb delivered with an AOG. Feed/sample chickpeas hover at $0.10/lb delivered plant. Desi chickpeas are still a moot with no front runner taking a position of value of new crop acres.
Oat markets remain quiet as the buy side shows very little demand for a low-quality feed oat (light, dusty, tough) and focuses on heavy feed oats @ $2.50-$3/bu FOB farm freight sensitive. Despite rumors that line companies are still moving first half 2020 contracts, current buying interest is April-June shipping period with balanced movement throughout. New crop values have died off from previous weeks given the current global situation with the expectation of acres staying relatively the same or a slight increase from last year.
It has been a wild week on world markets and some commodities have jumped considerably very recently. Unfortunately, mustard remains in a tight trading range and we are not expecting much of a change short term. New crop mustard and seed has been booking steadily. Old crop sales have been happening, but fairly slow. Yellow mustard remains at 38 cents for spot and new crop. Brown mustard is stuck at 27 cents FOB for spot and as high as 29 cents for new crop. Oriental spot sits at 25 cents for Forge and 24 to 25 cents for Cutlass. New crop is as high as 28 FOB for Forge or Vulcan and 25 to 26 cents now for Cutlass. We encourage growers to set targets to show buyers you are a serious seller. We still have open acres for an IP Brown mustard program at a premium to commercial markets. We have certified seed available of all types and can still make deliveries happen. If you have not ordered your seed, please call us as soon as possible to possibly find room on delivery to your yard.
The barley market is still holding up this week as a weak loonie keeps US corn into Alberta at a minimum. Feed movement is mostly pushed out into late spring and early summer as road bans, seeding and previous purchase commitments keep things from moving off the farm promptly. Expectations of a wave of spring thrashed grain coming to market has a few nervous about prices getting beat up, but this will all depend how these crops weathered the winter, which we should find out shortly. Current feed bids range from $3.75 to $4.25 picked up on the farm in Sask with the stronger values further west/south and weaker prices further north/east. There might still be an option for malt prices on old and new depending on variety, if you have interest to get something sold, talk to your merchant on details and see what we can get lined up.
Soybean futures prices dropped overnight as Brazilian exports finished on pace for a record-setting March and Chinese demand limps along as supply chain backlogs are cleared. Soybean cash bids in the range of $10.00/bu picked up on farm, location dependent. Faba export demand on hold and feed bids still hanging on near $6 picked up. New crop dry bean production contracts are getting close to sold out…still a few acres available. Call your Rayglen merchant for more info.
You can hear a pin drop. That’s what it’s been like in the Canary market, has not made any noise the last number of weeks. Old crop pricing still seems to be hovering in that 26-27c/lb range with April to June movement. With new crop equally silenced and holding steady in the low 20s for pricing. Moving forward there is limited export for the rest of this crop year due to tight supplies. The demand is still there but that window is shrinking waiting for Europe to show up in the buying market.
Lentils continue to strengthen as there seems to be concerns with the world food supply. What is causing this run in prices? Problems with India’s crop, worry about Turkey’s crop, and Covid 19. North American has a decent supply of lentils and we know the quality therefore buyers are more comfortable purchasing our gain instead waiting to see the outcome of India and Turkey’s crops. This is the most excitement we have seen in lentils in a long time, with an increase in reds of 6 cents in the last 10 days and 2-3 cents gains in green lentils. New crop prices are starting to appear with reds trading at 21-22 cents FOB farm with an Act of God, and large greens trading at 24 for a #1 and 23 for a #2. Old crop still seems to be the buyers main focus compared to next year’s production.
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