As flax get closer to being harvested, new crop prices have met up with old crop. Bids this week are anywhere from $13.00/bu FOB to $14.00/bu delivered, with some flax buyers withdrawing their bids completely until new crop becomes available. Although the crop outlook is favorable, old crop supplies are thin which is keeping flax prices at a supported level. There are mixed reports from overseas which are also keeping flax prices at bay. Russia and Kazakh are reporting some drought which will affect yields and on the other hand, the EU is reporting an increase in flax acres. Prices are likely to remain sideways in the short term until harvest gets rolling and more solid reports from overseas start to emerge.
The barley market has really taken a turn to the downside with harvest in full swing in southern AB. Recent bids are in the $3.45 to $3.65/bu picked up on farm in eastern Sask and potentially up to $4.00/bu FOB farm in western Sask/ eastern AB. We are seeing some carry in value for those able to hold on to their product for a few months. Reports of large barley crops could keep grower bids suppressed this year, but only time will tell. Selling barley at a premium for new year movement may be a good play as supply should be plentiful throughout the year. If you are looking for the most current and up to date prices in your area, please call your Rayglen merchant.
The oat harvest is underway and some early yield reports deserve recognition and mentioning; up to 140 bus per acre in certain locations. Now, as always, these kinds of reports aren’t across the board, but so far, we can infer that yields will be above average, and supply should be plentiful. That being said, bids have not moved much over the last week in either direction. Indications are still being quoted as $3.50 to $3.75/bu picked up for good quality #2 CW oat for relatively quick movement. The opportunity to sell at those levels may fade as supply becomes available and we are already seeing bids for deferred delivery lower.
Chickpea markets shed a sliver of light as we head into festival season in India. While the attendance to festivals may be low, it should translate to higher consumption of chickpea flour. In addition, the Indian government has also decided that it will continue its distribution of 1 kg of chickpeas to almost 190 million families in need till November free of cost. It is believed that India is sitting on stock of over 2 mil tonnes, but the free food program will likely eat up half of that…. pun intended. New crop and old crop values have come together for large Kabuli’s hovering around $0.26/lb FOB farm. Smaller calibre chickpeas are also back on the radar with the same values as larger. Desi chickpeas are still quiet and are trading at a lower value to Kabulis with no firm price in hand. If you are looking to market Desi’s, please call your broker and prepare samples for shipping.
Wheat markets remains mute this week as we roll into harvest. There is chatter of what percentage of this year’s production will make feed. An average year can produce 10-11% of feed quality, but about half of the time we will see a better-quality production with only 5-6% feed. This year could be one of those years where milling quality is a higher yield which would explain the stall for milling wheat. CWRS 13.5% pro bids range from $5.50-$6.00/bu off the farm and 12.5% pro at $5.00-$5.35/bu. Feed wheat bids range from $5.71/bu in Lethbridge to $4.50/bu FOB farm Western Canada. All of this is location dependent and based on nearby movement (Sept-Dec). We are still in question period though and as we get more information on harvest; these values could shift.
Peas are being harvested in quite a few areas and yields to date haven’t been disappointing. This information is unlikely to provide any support to the already quiet market. Bids have been softening over the past month and there doesn’t seem to be any short-term upside to the pea market. Yellow peas are trading at $6.00/bu, greens up to $8.00/bu and maple peas are also seeing $8.00/bu, all picked up on farm. As per reports, India has seen an increase in their desi chickpea prices as supply has declined. However, this increase is still below their minimum support price which won’t encourage any import restrictions to be removed, yet. Therefore, if we do see any support to the pea market it likely won’t be till later into the marketing year.
Canola futures continue their steady climb up this week as November futures are posted at $488.60/MT today, compared to $485/MT at the same time last week. There is some carry in the futures market with January at $495.5/MT and March at $501/MT. As has been the case in the past, support for canola pricing is coming from strength in soybean oil futures. With canola futures on the upswing, now may be a good time to put out some firm targets and catch the rising market.
Soybean prices are still solid for the time being with bids at $10/bu in many areas of the province as a picked up on farm price. Our low Loonie has kept our price mostly in the double digits through a particularly weak period for soybeans as issues between China and US persist. Most of the buyers that we deal with on soybeans do not have any protein requirements and generally there are little to no issues on grading. Faba bean bids are pretty quiet right now for old crop but if you have some product to move let your merchant know and we can track down some pricing. Fall bids on #1 fabas are around $8.00/bu range on select varieties with a discount schedule on lower grades.
Lentil harvest seems to be well underway throughout the province. Early yield indications have been a wide range from disappointing to well above average. Red lentils are trading between 24-25 cents delivered, with some companies offering prompt movement. Large green lentils are sitting between 29-30 cents for a number 1 and 27-28 cents on a number 2. With similar demand we will likely see these prices fall as farmers get further along with harvest and more supply becomes available.
Canaryseed remains stable again this week with a few major players seeking product. Highest price being offered that we’ve seen is 27 cents FOB farm for immediate movement for those with product in the bin but offers may capture slightly better. If you’re looking for a new crop value with deferred delivery, say Sep-Dec, 26 cents FOB farm should be attainable. Canaryseed crops looks decent at this point in time, but if these high temperatures stick around much longer, it may lower yields as seeds in top of the head may not fully develop. Canary should have another good trading year as ending stocks will be lower than the last few years.
Stable unchanged pricing from buyers continues this week in the mustard market. We have heard the earliest reports on yields just starting in southern Alberta and southwest Saskatchewan. We will see how this develops and we will get a better idea as harvest picks up. Spot yellow is trading at 40 cents/lb FOB farm for August/September movement. Brown sits at 31 cents and oriental bids for short term continue to be a challenge with few 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. This may be the last week for new crop pricing as harvest starts. Call your merchant for details.
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