Barley markets still remain consistent. With 2022 harvest starting in some areas, and not very far behind in others, we suspect supply vs demand is going to catch up sooner rather than later. New crop mixed with old crop values have finally caught up to one another and rightfully so. Feed barley is trading around that $6.25 – $7.00/bu FOB farm pricing today yet, depending on quality and time frame for delivery. If you are at the point where you believe you are going to get something off this year, or have already started, we would highly suggest getting something onto the books. Clear up some bin space and get in on some earlier movement and historically great prices still. The malt side of things still remains to be somewhat quiet and sitting around that $8.00 – $8.25/bu price. Your best bet for anything coming off is to get the quality checked and let us do the work to obtain your best value. For anything above the posted values that we are seeing, calling in and placing a firm offer to sell makes sense right now as it is still attracting buyers’ attention.
The flax market remains at strong levels, but not quite what they were. If you were a flax grower that awoke out of a two-year coma, you would presume you were still dreaming after someone explained the flax prices for the last 2 years to you. Current product in the bin can be sold at $25/bu or a bit better picked up on farm for movement in the next month or so, whilst new crop prices also seem to be still catching $25/bu as well for December. You might yet be able to add an act of God on that contract today. Buyers that operate mostly to China have been quiet as the Chinese lean still towards cheaper Russian flax. The indications are that our market would need to slip a bit further before China is back as a major buyer. Old crop stocks are tight, but this year’s crop does look a fair bit better than last year’s, albeit with smaller acres for sure. So, time will tell if we produce enough that we need China in as a major buyer, or if the US, and some of Europe, continues to be our biggest market.
Chickpea markets maintain tone for another week as growers start to hit fields, and harvest cereals and lentils. Desiccation is expected in the later part of August with harvest early September. Growers are reporting lower than expected yields and also some concern over disease throughout Western Canada. It is still expected to be a better year than last year, but nothing is certain on how much better. The overseas markets are quiet; Turkey harvest is reported to be a little less than average production, but good quality. Not a lot of news out of Russia on their crop, which could be a game changer if they are selling into the market. The North American market is the highest offer today, so buyers will likely source elsewhere if Turkey and Russia are lower. US crops are reporting good growing conditions in the Northwest, which again puts pressure on Canadian pricing. Old crop bids for #2 Kabulis range from $0.44-.46/lb FOB farm and new crop is at par with that. Some buyers will still offer an AOG on acres if that is of interest. Feed and sample markets are valued at $0.25-0.30/lb depending on downgrading factors.
Canaryseed exports continue to maintain a steady tone and even above average, with demand strongest out of Mexico. StatsCan has attributed these, “additional bushels,” as a misreported carry from previous years, and note the level of today’s bids are pulling out bushels that have been sitting in the bin for several years. Sask Ag reports crop conditions as 67% good/excellent. If exports remain strong, the floor of canary should not see a typical harvest dip and might even have a potential uptick in the 4th quarter to support demand. Current crop values are $0.40/lb FOB farm for both old and new crop markets.
As harvest is underway in areas, peas got a yield bump to 40bu/ac, as per reports. We are seeing the usual seasonal decline in pricing, as new crop prices have faded away into old crop bids. Current yellow pea bids are at $11.50 – 12.00/bu picked up. Green peas are between $11.00 – 12.00/bu picked up, and maple peas are priced at $13.00/bu. The Chinese economy has had a slowdown which is likely to affect to Canadian peas coming into the country for their feeders, as per reports. Also, we have already expected that Russia will be able to supply into China, which will provide more competition for ourselves, and into price sensitive buyers in Asia. If we look to Ukraine, we already knew the crop would be reduced. It is looking like an amount that is half of last years’ that will be able to be exported. Stay in touch with your merchant if you are needing to clean out some bins before harvest is in full swing. We may still have prompt movements available.
Chart prices are trending up a bit on wheat as China and Jordan have zapped up close to 7.5 million bushels, along with a Japanese tender that is due today. The tender is looking for over 80,000MT with estimates of roughly 55,000MT to come from Canada. Encouraging signs as harvest is just starting to get going in some locations in Alberta and Saskatchewan, though many spots are sitting on pins and needles waiting. Buyer bids delivered into central Saskatchewan on a #1 red spring with a 13.5 protein are fetching around $11.85/bu for Aug movement. Feed wheat bids remain strong with $9- 10/bu picked up on farm. Flipping over to durum, pricing on a 2 CWAD or better sits at $13/bu delivered Aug. Knock $0.25-$0.75/bu off depending on movement time frame from Sept – Dec.
The window has almost closed for those premium spot mustard bids. Prices have come down to new crop levels as reports of some mustard being harvested trickle in. So far, harvest report yields are coming in very average. For September to October movement, brown mustard is sitting at 88 to 90 cents/lb, yellow at around that 92 cent mark, and oriental at the 100-cent range. Now it is important to talk to your merchant this week and put an offer out if you want August movement. This quick pick up might be possible at a slight premium to September bids, but it is certainly case by case at this point. If you have freshly harvested mustard, call us to take possible advantage of a slight premium for this quick movement.
Lentil harvest has started in throughout the province with product coming off in the Southwest, South Central and West Central. Early yield reports are a mixed bag on a small sample size. Buyers seem to have a real appetite for any type of green lentil. Large greens are at 43 cents/lb FOB farm today on #2 quality, small greens 40 cents for a #1, and 38 for #2, and medium greens 31 cents/lb(USD) for a #1 US grade. Buyers seem to be all over the place on red’s prices from 30 to 33 cents with some showing no interest, and others looking for a small amount of coverage. If you have product coming off and are looking for quick movement, we do have some options available.
Oat markets continue to weaken as buyers feel they have much of their harvest needs covered. The oat crop for the most part is in good shape. At this time, buyers and traders figure based on crop conditions and increased acres, that the market will have good supply compared to last year. There is some concern from farmers on their crops being a bit later than normal which may lead to quality issues, but so far this seems to be a farmer concern and not a buyer concern. The market prices seem to range between $5.00 to $6.00 delivered, depending on location and timelines. At this time, there is likely more downside than up based on expected yield and how much grain was prebooked for this fall delivery.
Canola futures have been largely range bound and variable this week. Support for canola pricing is coming from US soy complex, European rapeseed, palm oil, and outside energy markets. Balancing that off are decent growing conditions for canola across most of the Prairies. The Eastern Prairies will need a longer than normal frost-free period to avoid harvest grading issues due to late planting. Canola will receive significant direction from the upcoming Friday, Aug 12th USDA report. Local canola bids are hovering in the range of $18.25 to $18.50 picked up on farm.
Soybean prices have seen recent gains due to the persistent heat wave that could threaten yields. Russia is considering resuming rapeseed exports with Asian countries. This could threaten soybean export volumes. Local bids are location dependent and range from $18.50-$19.00/bu fob farm. Lower dry bean planted acre forecasts continue to be supported by analysts and statisticians. Dry bean prices are predicted to remain well supported through harvest predicated on lower year over year production. A similar story exists within faba beans. It’s anticipated that Western Canadian planted acres could be the second lowest in 10 years at under 60,000 acres. As it relates to pricing, fabas are still taking their lead from domestic feed pulse markets. New crop faba bids showing up around $12.00/bu fob farm for a #2. Old crop feed faba bids are near $9.00-$10.00/bu fob farm location dependent.
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.