Chickpea markets are very quiet as of late. Current bids are in the 25 cents/lb range for a #2 product with across the board pricing. Obviously, this price is not bringing much (or any) product to the forefront as growers don’t get much inspiration at these levels. For most buyers that’s ok as the overseas market is very slow, and buyers are not looking to get much (if any) product on the books. The crop out in the field is a bit of a conundrum as issues with disease are reported to be pretty widespread and the jury is still out as to what tonnage and quality we will see from the infected acres. Reports suggest it may affect 20% of seeded acres. Ultimately the most important factor on our prices is that the world demand for chickpeas is strong and that we are still waiting to see how things unfold in India, Mexico and other areas.
Flax markets are definitely quieter than they were even a month ago. With new crop around the corner and analysts pegging the Saskatchewan crop 76% good or excellent, we are seeing prices around $14.00/bu delivered. The heat in the last couple of weeks may be a factor but at time of writing, analysts are giving the flax crop positive ratings. North American acreage is smaller and with less carry-over, prices should remain firm. The unknown is the European and Black Sea region crop. There have been some reports of drought on Russian and Kazakh flax which would impact yields. If yields are better than expected overseas, we could see the flax prices push down. As harvest evolves, prices will start to firm up.
The wheat markets have softened over the last couple of weeks. There is enough supply along with the large corn stocks, that buyers are not chasing the market. The 2020/21 crop year will be about capturing small rallies. This crop year will be about looking at the price per acre versus the price per bushel. The feed wheat market has also reflected the drop in prices. Prices vary based on location, but indication in the $4.00-$4.50/bu range picked up. Milling durum prices have also been stagnant with sideways pricing in the $7.50-$8.00/bu range.
Producers have begun harvesting and pea crops with strong yields look to be the case thus far. Even though acres were slightly down from last year we are expecting a larger production, with green peas seeing a big increase in tonnage. As per reports, it is being estimated that yellows will be up 9% from last year and green peas up 37%. If this ends up being the case, we could expect to see more downside in the green pea market. Any upside in pricing we may see this year will likely be gradual as well. It isn’t looking like we will be seeing many exports into India this year, so we will be more dependent on moving peas into China. Current pricing has yellow peas at $6.00 – 6.50/bu, with maples and green peas at $8.00 /bu range.
Canola futures are up slightly today with November posting $485/MT and January offering a $6/MT premium at time of writing. On farm producer bids for nearby delivery are around $9.50/bu pending location and freight costs. Strength seen today is due to a rally in soyoil and canola’s ability to ride coattails. Recently we’ve seen some stronger bids for Jan-Mar delivery, so if you’re interested in a new year delivery time frame, give the office a call. Harvest is underway in many areas and once we know how this year’s production shakes out, it should provide a good road map for the general tone of canola this year.
The lentil market is sitting relatively flat this week as we start to hear of some lentils coming off in the southern areas of the prairies. While early reports on yields make it sound like a big crop is coming, there remains some concerns on later seeded crops having too much heat near the end to properly fill in. As far as pricing goes, small red lentils are hovering between 24-25 cents/lb FOB farm for #2 quality, large greens are at 28 cents/lb FOB farm on a #2, and small greens are also between 24-25 cents/lb FOB farm on a #1 quality. We encourage growers with contracts to get pictures and samples sent in quickly to get the ball rolling on movement.
Canary seed markets appear to be bucking the usual trend of weakness in pricing around this time of the year, with bids staying fairly sideways as we get closer to the crop getting put into the bins. Sask Ag’s final crop ratings show a solid improvement in canary seed crops across the province. Good or excellent ratings jumped 7% to a final number of 67%. That being said, acres did not go up as much as many people expected and on farm stocks have been depleted from the strong pricing of the last year so growers should expect a bit of strength come October/November. As for right now, we’re still seeing bids of 27 cents/lb picked up promptly for product in the bin, while new crop is at 26 cents/lb picked up between Sept/Dec with an AOG.
Optimism over ongoing trade negotiations with China helped overcome bumper yield projections expected from USDA. Private exporters reported a 4.8-million-bushel soybean export sale to China yesterday morning. It marked the fifth trading day in a row that China purchased 2020/21 U.S. soybeans. Soybean bids continue to hover between $9.50-$10.00/bu picked up location dependent. Faba bean demand for export quality is currently quite low with very little price differentiation between feed and #2 quality. Australian faba crop prospects continue to increase which is pushing prices down and also pushing Canadian fabas to the back of the line. Bids are in the range of $6/bu picked up in most locations. In general, across Western Canada, dry bean conditions would suggest above-average dry bean yields. Concerns about the US dry bean crop have moderated from some the earlier concerns that were being discussed in eastern part of the growing region. If seeded acres and crop intentions come to fruition, one can expect some price pressure on local cash bids.
Barley prices have really fallen back over the last week as new crop is already coming off in Alberta. Old crop Sask prices are ranging in that $3.40-$3.75/bu picked up on the farm and you may be able to still get movement here for August depending on the quantity. New crop prices are also weak as we’ve seen figures at $3.50 – $4.30/bu picked up on the farm depending on location with the latter being Alberta pricing. Feedlots are being shown an absurd amount of grain as it’s coming off hot and heavy in Alberta.
The oat market has remained pretty quiet here again this week. You can still find bids on old crop around that $3.25-$3.50/bu FOB farm on #2CW. There hasn’t been any change in the new crop market as buyers are still looking at $3.50 – $3.75/bu delivered in with movement being pushed out into the new year. If you are looking for some firm pricing call your Rayglen agent. There doesn’t seem to be a whole lot of feed oats around, but pricing is still hovering between $2.50 – $3.00 picked up on farm.
Mustard remains stuck in a holding pattern price wise. It’s a bit early yet for mustard harvest reports, so we anxiously await some yield information. Buyers report muted demand still, but there is some quick movement possible. Spot yellow is trading at 40 FOB for August/September movement. Brown sits at 31 cents. Moving oriental, short term is a challenge right now with little options on the table. New crop yellow mustard ranges from 39-40 cents, new crop brown from 30-32 cents and new crop oriental 26-28 cents on forge. The price depends on the movement timeline but are picked up in the yard and still have act of God at this late date. Call your merchant for details.
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