Another week of stable chickpea markets was seen over the past 7 days. Values are unchanged from last week with #2 Kabuli’s bid at $0.46-0.47/lb FOB farm for both old and new crop, with production contracts carrying an AOG. The opportunity to clean, size and sort off spec product has kept feed/sample supply as a first choice for buyers. Although there is very little around to trade, demand remains strong with values in the low to mid 30’s FOB farm. Growers have not been showing much selling interest on the new crop side of things, and buyers are not pushing hard to get acres at this point, but the topic is steady in conversation. Expected acres are still a big question mark with a general belief that there will be a reduction for the coming season. The US market has been inching lower and export demand is still hard to find at current levels. As we work through carryover supply, values should remain steady for the unforeseeable.
Barley continues along the same path this week, and although current bids on old crop feed barley are not as strong as they were previously, the values that are attainable are great. Old crop feed bids remain around that $8.00 – $8.25/bu FOB farm with the delivery window being pushed into the summer months. Keep in mind these are freight sensitive numbers, so call in to capture the best price out of your area. We suspect as we inch ever closer to 2022 harvest, and with some recent much needed moisture throughout the prairies, a big spring price push is likely not expected for feed barley. That being said, given the historically high prices for feed, how much of a price spike could be expected at this time? Old crop malt also remains unchanged with your best opportunity for trade likely being a firm target. The same can be said for new crop malt. New crop feed barley has buyer interest, potentially as high as $8.00/bu+ FOB farm. These numbers on 10% – 30% of your expected production seem like no brainers to hedge the downside risk, free up storage early in the year and start that cashflow!
Oats continue along unchanged from recent weeks. Old crop milling oats range around that $8.50/bu mark with a pushed-out delivery period. Buyers and/or bids, however, do not seem to be deep at these values with what seems like hand to mouth purchasing taking place. As we typically see in oats, once buyers purchase what they need on old crop (which they are growing closer to doing everyday), the price will have a dramatic drop off. This makes sense in the current environment given the historically high prices, and the simple fact that nobody is going to want to be long at these values. We would highly suggest looking to offload what you have sitting in the bin. There still is some sporadic buying of off quality oats, but to get a firm value, your best bet is to show us your specs and let us work with it. New crop oats still have some added value as well, quoted up in that $6.70 up to $6.80/bu range with the latter pushing into March delivery. With some recent moisture and more expected in oat growing country, this price may soften off a bit so again, we suggest looking at getting something on the books. A few buyers may still entertain a roll over option on new crop contracting, call for details.
The pea market remains basically unchanged from last week. Yellow peas continue to hold their premium to green peas with old crop pricing at $16.50 – 17.00/bu picked up. Green peas are priced at or around $14.00/bu picked up this week. Buyers don’t seem eager to purchase green peas, with container shipping issues weighing down on the pricing. Growers also haven’t been pricing out many greens at these levels and buyers don’t see the need to chase product at this point. New crop bids are the same as last week with yellows bid at $13.00 – 14.00/bu picked up (latter is pushed out movement and in southeast Sask only) and greens quoted at $13.00/bu picked up, both have an act of God. Maple pea trades remain quiet on both old and new crop, with current pricing at $16.00/bu and new crop at $13.00/bu, both picked up on farm.
Canaryseed had an increase in old and new crop bids this week to 48 cents/lb & 40 cents/lb respectively, delivered to various locations this week. This price bump shows that there may be some more export demand left on spot product, and potentially some encouragement to plant acres on new crop. We can usually expect there to be a buildup of stocks at Thunder Bay in the coming months, but we have yet to hear of any such reports. With the high prices that have been shown this 2021/2022 marketing season there was a good number of unreported supplies moved into the market. Therefore, with stocks down, we may be able to expect pricing to remain strong.
While flax bids have slid lower over the past several months, prices still remain historically strong with bids upwards of $37.00/bu picked up. New crop pricing also remains historically high at $26.00/bu picked up with an act of God. Disruptions caused by Russia with the invasion of Ukraine seems to be keeping flax prices supported. Trades have become more complicated as Russia was the top supplier of flax to several countries including the US. Canada could see some more demand although supplies are very tight, which could signal strength in local bids. Flax pricing in China has had little reaction to the Black Sea situation and trades are still fluid between the two regions. China has become a major destination for Russian flax.
The canola market continues to fluctuate quite a bit on the open market in the “day to day,” while hitting new highs this week for fall pricing opportunities. The May and July futures at time of reporting are lower by $7 and $12/MT, while the November futures are up $6/MT. So trade has been, and continues to be, mixed. Reports this week of a few trades for the fall locked in for $23/bu range in some areas of the province are substantial numbers to say the least. Locking new crop can be riskier business on canola than other crops that might carry an act of God, but at levels as high as they are, one has to feel there is more downside than upside potential. We will see how things unfold, but it would be hard to fault anyone for locking in some tonnage at these levels, which are unheard of, for new crop at this time of year.
The wheat market continues its upward trend today as buyer bids keep breaking new barriers. Interest in a #1 red spring with a 13.5 protein surpasses $14.50/bu delivered in central Sask for Apr movement. Looking to move the product after seeding? Well, keep etching that price skyward. Buyer interest continues on new crop, so if you have a firm price in mind, call your Rayglen merchant. Looking at the bigger picture, the search for old crop continues abroad with many countries looking to secure product. Most recently Egypt, who last year imported 80% of their wheat from the Black Sea region, is on the hunt to bolster tight stocks aimed to carry them over till new crop. Expect to see an uptick in planting acres, but just how much? We’ll just have to wait and see. Flipping to feed, buyer interest pegs in around $13/bu FOB give or take a bit depending on farm location with movement pushed out to summer. Shifting over to durum, buyer bids on old crop hover around $16.50 – $16.75/bu on a 1 CWAD. There are various options on new crop durum, but bids range around $14.25- $14.50/bu delivered in.
Mustard prices remain very strong this week with no signs of backing off as the situation between Ukraine and Russia remains the same, if not worse. New crop mustard continues to trade at record levels, while many bin clean outs are now taking place also at record highs. We see bits and pieces of even lower grades #3/ #4 or sample grade moving at very attractive levels. We do have homes for heated mustard also, so please let us know if you’re sitting on any. Old crop movement remains fairly quick so there is still time to empty those bins before new crop. New crop remains hot as yellow and brown continue to be bid at $0.95/lb, while oriental is quoted around $0.86/lb or higher on target, all FOB farm with an act of God. Old crop yellow is bid around $2.00/lb, with brown mustard staying strong around $2.00-2.10/lb, and oriental trading up to $1.15/lb. These prices are quoted as FOB farm and based on a #1 quality in most locations. We may have some untreated and treated seed options left, just let us know as soon as possible as we can still possibly deliver to your yard, but this is getting harder as a few seed loads have already shipped.
Lentils are having another quiet week on the trade desk. Minimal sales have taken place on old or new crop large greens, with spot purchases now quoted sub 55 cents/lb for the most part on #2 quality. Lower grade large green bids have held up a touch better over the past week and indications are still floating around 49 cents/lb for an X3. New crop lairds are holding up still quoted in the 42-44 cent range FOB farm with an Act of God. Shifting to red lentils, recent pricing is quoted at 42 cents/lb for old crop and 35 cents/lb with AOG for new. Markets will likely remain hand to mouth until we get a better outlook on new crop plantings, or someone gets nervous on their supply. New crop contracting is starting out at a slow pace due to moisture concerns, but these values are still attractive to secure 5-10bpa. If production contracts remain slow through harvest, this could lead to more spot sales in the fall with multiple growers looking for quick movement off the combine especially if yields look decent. This will likely drive price down and leave many growers fighting for delivery space. If uncomfortable booking new crop at this point, make sure to keep a close eye on the markets and provincial crop conditions as prices and contracts may disappear in hurry if the crop looks good come summertime.
Soybean futures trading range appears to be consolidating but did manage a modest increase today. Recent market factors are the truckers strike in Argentina, and slim crush margins idling back Chinese imports. Local bids are location dependent and range from $17.75 -$18.50/bu FOB farm. Dry bean comparable profitability may cut into dry bean planted acres for the upcoming season. Acreage reductions are anticipated both north and south of the border. New crop specialty dry beans bids are between 50¢-60¢/lb delivered. It seems that once again Australia is in top seat for export fabas. As a result, our domestic market is largely being driven by local feed values. New crop faba bids showing up around $14.00/bu FOB farm for a #2. Old crop domestic feed market is propping up feed faba bids in that $13/bu FOB farm and when old crop #2 demand periodically occurs, it is often near $16/bu FOB farm.
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