After many months of sideways flax prices, we have seen a bump in the market this week. For those with milling quality flax, let us know what you have in the bin, so we can get you a price picked up in the yard. We also have some interest for #2 quality flax. New crop prices on brown flax are mostly sideways at $12.50/bu FOB. Old and new crop yellow flax prices hasn’t seen too much change, but there are markets. There is still heavy competition coming from the Black Sea region, but there has been some business opening up from the US. Canadian flax prices are holding up due to tighter supplies and the flax acres still out in the field, although we can expect that to be off-grade quality. The long-term outlook on flax seems to be steady, but now is a good time to take advantage of these short-term gains.
The feed wheat market remains stable this week with many areas trading over $5.00/bu FOB farm throughout the prairies. Delivery periods have been pushed out towards summer months, but those who are still able to haul primary weights may capture some quicker movement. What we do know is values are enticing growers to make sales and rightfully so. There is still talk of the unharvested (presumably feed) grain to hit the market in short order. Although we don’t know exactly what this will do to our markets, we can assume some bearishness due to increased supply. Milling wheat and durum have been showing relative strength as well with durum trading around $8.00/bu FOB on #1 CWAD and milling wheat holding its own in the mid $6’s. If you are looking for the most up to date prices in your area, please call your Rayglen merchant.
Chickpea markets did not ride the coat tails of last weeks lentil rally, but they are always a topic of conversation. Rumors of India’s potential crop issues have yet to effect chickpea values, but speculation is pushing more towards that opportunity. Time will tell at this point as no buyer or seller is willing to speculate in such uncertain times. Old crop large kabuli chickpea bids are $0.24-$0.26/lb FOB farm with freight sensitivity and new crop hovering around $0.23-$0.24/lb with an AOG. Feed chickpea bids have not changed in several weeks with $0.10/lb FOB farm trades. Chickpeas have not been the start of any conversation for several weeks, but they are always in the mix. Offers have been very successful in todays trading climate and encouraged on our end if you have bushels you need to move.
The pea market has been seeing bids firm up, which has prompted strong export movement. Our export numbers have now increased above last year’s total; with recent trades having Nepal being one of largest green pea customers and China still the main buyer for yellow peas, as per reports. For pricing, yellow peas have had $7 – 7.50/bu FOB trading on target, with the price getting stronger for summer delivery timeframes. Green peas are trading at $10.50 – 11/bu FOB. Recent reports show the US is expecting a 12% decrease in pea plantings. Therefore, if our seeding intentions end up flat or slightly lower as well, new crop may firm up. Current new crop bids are $6.50/bu FOB on yellow peas and $8 – 8.50/bu FOB on green peas. Maple peas remain quiet in the oversupplied market. Current pricing is at $8/bu FOB and new crop values are around $7.50/bu FOB.
The feed barley market has seen prices firm up over the past week or two and we expect the US corn values to keep the barley market somewhat at bay. Right now, corn values aren’t cheap enough to discourage feed barley prices, however the gap has closed a bit. Current old crop values are trading at $3.80 – 4.40/bu FOB farm. Stronger values are for movement into the summer months, and as you move closer to South West Sask. As we have now hit road ban season, most of our feed buyers have moved their movements back to avoid secondary loads. However, we can still get quicker movement if needed.
Current prices on #2 milling oats still have some buyer interest that works back to around $3/bu or a little better picked up in areas along eastern Sask. Most movement windows are pushed into summer months but with road bans, seeding and some possible harvest that is probably not a huge issue to most. Feed oats prices remain low with recent indications around $2.25/bu in most areas of the province. One would think with recent upticks in feed wheat and feed barley there might be some generated interest in much cheaper feed oats, and a price bump, but that is just not the case, at least not yet. Most bids are pushed well into late 2020 on movement or even into 2021 as most buyers are well bought up for the time being.
After what was a busy news week in canola last week, things have definitely calmed down this week. There continues to be concern about Covid-19 reflecting in these markets and with the USDA supply/demand report coming out Thursday we’re seeing even more caution in grain and oilseed futures. May futures have dipped slightly lower to $462/MT, compared to $465/MT. July futures are closing in and as of today, sit at $468/MT.
Lentils got caught in a trading whirlwind last week spinning out of control till late Thursday afternoon. The red lentil market reached 30 cents delivered before buyers finally tapped out. Large green lentils followed right along with #1s trading at 30 cents and #2s trading at 28-29 cents. Small green lentils trade at 25 cents for a #1. Prices took a jump as markets around the world came to the table after news that India was having troubles getting laborer’s out in the field and Turkey has production concerns. Canada was not the only country to see a spike in price, Australia saw a rise of $70/tonne AUS Dollar. With price rising around the world hopefully this means there is prolong strength in the market, not just a blip on the radar. Since last Thursday prices have slipped a little with losing 2-3 cents. New crop contracts also saw a boost in the last week, with new crop reds trading as high as 23 cents, small green lentils trading as high as 24 cents for # 1, and large green lentils trading at 25 cents for a #2, these are all picked up on farm with an AOG.
This past week, mustard continues at very similar prices after a wild week for some other commodities. Some stability has been apparent this week in the general markets and helped to stabilize grain markets it appears. Mustard remains in a tight trading range and we are not expecting much of a change short term unless the Covid-19 outbreak changes things. 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. A target set with your merchant might be a good strategy this week. 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 find room on delivery to your yard.
Soybean futures were up following strength in the grains complex. Traders also adjusted positions higher ahead of tomorrow’s monthly WASDE reports from USDA. Malaysia’s largest palm oil plantations are expected to remain closed. Easing export demand weighed on soymeal prices due to uncertain outlook for livestock and poultry demand. China has authorized the release of 18.4 million bushels of soybeans in state reserves amid tightening domestic supplies. Export delays out of South America due to bad weather and COVID-19 restrictions have sent weekly stockpiles plummeting to 128.2 million bushels as Chinese demand begins to recover from Corona Virus. Analysts worry the arrival of the South American crop in May will be too little too late as global soy demand is curbed due to the international spread of Corona Virus. Local soybean bids continue to hover around $10/bu picked up depending on location. Faba export demand is limited with small opportunities at $9.00 picked up 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.
Canary seed seems to be hanging tight on pricing with no real change the last several weeks. Old crop remains trading around 26-27c/lb FOB farm with April – June movement. More and more suspicion is growing as to late season price pop as seasonal movement has been delayed thus minimizing that window for buying. With the large amount of buying earlier this year we may see buyers with enough product to carry them through to new crop. Speaking of which, not much has changed for pricing as 21-22c/lb seems to be the growing rate on production contracts with an act of God.
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