The canola market has been fairly range bound this past week and continues to hover around the key support level of $450/MT, currently trading at $455/MT. The Chinese circumstances for canola have seen little change over the past week, with Canadian officials/groups getting organized to try and deal with the situation. Currently canola is trading at $10.20/bu delivered plant for April/May and due to basis levels widening for further out deliver there is no carry in the cash price for summer movement at this time. We have seen some specials pop up in certain areas for old crop so growers looking to move canola should stay on top of the market and take advantage of any opportunities that arise. In this market environment, specials may not last long or may not be very deep. New crop canola values are currently hovering just above 10.00/bu delivered plant for Sept/Oct movement.
The yellow pea market continues to weaken in Canada and unfortunately, it all has to do with politics. There seems to be no quick solution and it could drag into the 2019/2020 crop season. Fear that China extends import bans to peas and other commodities has buyers nervous. This is not the first time we’ve seen politics play a role in our markets, with the producer left to pick up the pieces. Prices on yellow peas have been sitting between $6.25 to $6.50 FOB the farm. Green peas have been the shining star of the pulse market with bids trading around $13.00-$13.25 FOB farm. That price is so strong because green pea stocks are very tight. New crop bids aren’t quite as attractive as old crop, but worth looking at. Trades are taking place in the range of $8.00/bu FOB with an act of God.
Canaryseed bids remain stable at 23.5 cents picked up. Buyers don’t seem to be having trouble in finding supplies for upcoming shipments. As per Stat reports, this could be indicating that supplies aren’t as tight as was originally reflected. New crop bids have been holding at 21 cents picked up with an act of God for several weeks; as buyers don’t seem to be worried about 2019 seeded acres. With Argentina increasing seeded acres and having successful yields this year, we are expecting larger exports from them. This could also be holding prices at bay as Argentina will be supplying South American countries that Canada would normally export to.
The oats market continues steady for the most part and at this point in time, seems to be one of the few commodity markets unchanged by recent political turmoil. In the feed market oat demand is stable, but not at values that seem to trigger farmer selling. Producer targets aren’t quite where buyers need them to be, so they are better off purchasing barley or pellets. Feed oats right now are around $2.50-2.65/bu FOB farm. Milling oats trade around $3/bu FOB farm for April movement, or if you are in the South East corner and can hold it till June-July you can get $3.50/bu delivered to Manitoba. New crop values are still out as well if you are looking to get some locked up.
Continued talk of increased CWRS acres has not affected the wheat market to date. Milling quality bids range from $6/bu picked up to $7.25/bu delivered facility for nearby movement. New crop ranging from $6.10-$6.25/bu delivered facilities. Durum continues to stay under the radar with values hovering at $6.50/bu delivered throughout the province. Neither market feels a strong push towards an upward trend as we head into seeding.
The feed barley market has seen a slight dip this week as corn is being brought into feedlots at lower values. Bids range from $4.40-$4.80/bu picked up on farm with movement out until at least June. Pricing is better the further west you are as most product is heading to Alberta. Historically, feed prices are still very strong and if you have some left in the bin you’re going to want to get it priced before the end of May, when we’ll be getting close to new crop coming into the market. New crop feed values have also slipped a bit but are still trading between $3.50-$4.00/bu depending on location and movement timelines. New crop two row malt barley contracts are still available in the $4.90-$5.10/bu range picked up, again these prices depend on location and movement period.
Flax prices remain steady on #1 quality for the most part with $13.00/bu FOB in some areas. Milling quality flax may see up to $13.35/bu picked up for further out movement but buying interest seems to be at a standstill this week. China has more options to import flax and while Kazakh quality might be an issue, the freight costs are lower. The latest reports of the slower flax trade into China from Canada confirms there are issues on the horizon. The flax prices could soften, however, the lack of farmers selling seems to be keeping the prices at bay. Yellow flax prices are unchanged with $13.00/bu picked up on both old and new crop.
The Kabuli chickpea market continues to eb and flow this week as demand has been unsteady. Majority of our chickpea product is exported to the US, but India is also a big market and tariffs provide a hurdle. Current price sits at 24 cents FOB for a #2, however we are stacking offers at a significant premium to todays values for very large sized product. Talk to your merchant for more details on this program. Buyer indications on new crop have been hovering in the mid twenties for those interested. Production contracts generally include and act of God covering quality and quantity risk. Desi chickpeas pricing is hard to find these days. The latest indications are in the low twenties.
Mustard remains in the same trading range this week. The bump in offshore shipping we usually see in spring, may already be factored into the price, so bids could be pretty flat for a while. We also will watch for softness as some growers need to sell some binned product ahead of the new crop coming off. New crop bookings have been steady as mustard still pencils in as one of the bright spots for the 2019 planting season. Spot prices are at 35 to 36 cents on yellow, 30 cents on brown and 25 cents on oriental, variety specific. New crop opportunities are available up to 37 cents on yellow, 31 cents on brown and 28 cents on new crop Forge or Vulcan type oriental. If you have Cutlass, a possibility of new crop at 25 cents may exist. Please call the office for last minute seed needs……we have treated, and untreated certified varieties delivered to your yard on all types.
We have had a little action in the red lentils this week, with one buyer going to 19-19.5 cents/lb del into the southwest. This is a great price compared to what the rest of the market is bidding at the moment and we suggest making sales. We don’t expect this price to be the new norm, but more so an advantage on the processing side. Once this tonnage is full, expect to see the price come down to regular market value of roughly 17cents/lb delivered. Large greens still remain quiet and it is hard to find a number 2 bid in the 20’s. FOB farm values are closer to 18-19 cents/lb and when bids are available, buyers are not looking for a lot of tonnage. Small green lentils are still sitting around the 16cents FOB farm with a few targets hitting at 17 cents, but the majority not. New crop bids for all lentils are pretty much nonexistent or below producers’ expectations.
Soybeans are grasping to modest gains and hoping that the reversal from last week’s break-down will hold. Burdensome inventories continue to drag on the market, hopes for a trade deal with China are again providing some lift. Trade talks resume today in Washington, in what could be one of the last rounds prior to negotiating the final agreement. Old crop carryout could be lower than USDA found, but is still onerous. With more acres likely to be planted than the USDA indicated on March 31, rallies on a trade deal with China are the best hope for making old crop sales. Soybean local bids are trading at $10/bu picked up on farm. Old crop faba bean market remains the same with buyers on the lookout for scarcely remaining #2 quality with bids in that $11/bu delivered range and feed fabas are in the range of $6/bu picked up.
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.