Canaryseed exports have slowed slightly, which we expected, since we saw the first bump in prices back in October/November. Mexico was our largest buyer throughout the past months, but according to Stat reports, we also had Indonesia getting back into the buying market. Typically, we will see another round of exports ramp up come springtime. For current bids, we are still seeing 30 cents/lb picked up in the yard, but movement is pushing further out into the new year. New crop bids have yet to firm up, but we suspect they will come in close to 26 cents/lb picked up with an Act of God.
Chickpea markets have seen some activity in the lower quality grades this week and last. Buyers are interested in quality just below a #3 or sample and a few even have drying capabilities for a fee. It is believed the product is being cleaned and color sorted to make a #2 quality for market. From last week’s report we know the 2019 production had about the same amount of #2 chickpeas and a significant increase in poor quality production. This will create further opportunity for the lower quality to have strength given the mix and blend opportunity while the #2 market should remain relatively stable. Trades happening for #2 kabuli’s remain somewhere between $0.26-$0.27/lb FOB farm for Jan-March movement and Sample/#3 anywhere from $0.10-$.14/lb FOB farm sample dependant. Smaller caliber chickpeas are trading at a $0.02/lb discount to Kabulis and Desi chickpeas have finally seen some action trading at the same levels as Kabulis. Typically, Desi’s would trade at a slight premium but the overseas markets dictate what is needed and with India having no shortage of rain, the demand is lack luster.
Despite the recent StatsCan report with canola numbers lower than anticipated, there has not been a fire to light this market up yet. There is an estimated 8.3% decrease from 2018 to 2019. We all know the 2019 crop year was a difficult one with heavy rains to overly dry conditions. Couple this with colder than normal conditions, including early snow, there is still some unharvested crops remaining in the field over the winter. At the time of writing canola futures are $456.2/MT for January. We are also hearing of some canola that went into the bin dry and with recent checks have some heat or green issues. We do have markets for that kind of quality as well.
I’m sure most of you are aware that the StatsCan report came out late last week and I bet you’re all wondering what it says about oats? Well, oat production has risen just over 4MMT due to increased yields and harvested area. So, any quality question marks on oats have been offset by this increased adequate supply. As such, oat pricing continues to hold steady with feed still trading in that $2.50 – $2.80 FOB farm and milling bids ranging from $3.00 – $3.80 FOB farm with the latter for those located in SE Sask near the Manitoba boarder. Some new crop prices have shown up so if you are looking for firm bids, give your Rayglen agent a call.
The festive season is soon upon us and many producers and buyers will be taking a short break from farming related duties, which may be much need after this year’s harvest. According to StatsCan, pea yields were around 36.8 bu/acre, falling into an average range over the past few years. The yellow pea price has shown a slight increase over the last few weeks, but overall is not expected to continue its climb as India remains a non-player in this market. Bids range between $6.25 to $6.50/bu FOB for #2 quality. The green pea market has been sitting around that $10.50 to $11.00/bu FOB for #2 quality, which are strong bids to start pricing some product. Production contracts for the 2020 crop year are not yet being offered, but we could possibly see programs start early in the new year. Finally, if you are looking for seed, we have quite a few different varieties out there and can arrange freight to your farm. Call your merchant for pricing details.
Prior to StatsCan reports, most knew that we had a plethora of barley in the field. StatsCan substantiated these observations showing Canadian farmers produced over 10MMT of barley, a 23-24% increase from the previous year. A tad of this supply has been offset by the difficult corn harvest and as such, has somewhat been supportive to feed barley prices. We’ve had some high threes and even $4/bu FOB farm trade based on good freight locations for buyers. Give us a call to firm up feed prices for your area. If you are questioning whether or not you have malt barley, feel free to send in your samples, just be prepared to wait a bit as we’re experiencing delays in receiving grading results.
Mustard markets are sitting stable for the moment. The reported yield numbers fluctuate with StatsCan stating 776 lb/acre and Sask Ag stating 956 lb/acre, making everyone a little uncertain as to what the real value is. This uncertainty is keeping the markets stable as overseas traders are trying and get a better handle on our production. If yields are closer to the StatsCan reports, expect market price to rise as stocks will be tighter than first anticipated. At this point in time it seems as though buyers feel confident in their bids and the supply as offers that are a cent or two above market are not getting much interest. We suspect yellow and oriental varieties will have the most upside, with little hope for brown as increased acres over the past couple years suggest supply is adequate. Pricing for this week has yellow trading at 40 cents, brown trading at 28 cents and oriental 23 cents all on a per pound basis.
This week we have seen some sales on all types of lentils. Reds continue to trade at 20c/lb FOB, and a regular #2 large green lentil has been trading at 24c/lb FOB farm quite easily. Give us your targets for slightly higher and we might be able to get a trade done even as the holiday season approaches; especially if you have X-2 or #1 Large greens. We have seen some good demand for extra 3 quality this week as well, with reds trading at 18 cents FOB and large greens at 19 cents FOB. As usual call us for pricing on #3 and sample grade lentils also. Not much change with new crop lentil contracts this week as we have no firm bids to report yet, but we do have buyer still looking for growers to sign up beluga lentils on limited acres. Call for details on seed, as we have availability on all types.
Soybeans have settled higher for the past 6 trading sessions. Traders still remain bearish soybeans, however you would too if you were holding a short. If the shorts get nervous and bail, we may see a position dumping driven bounce that will likely correct after everyone’s heads level out. Local soybean bids are trading in the range of $9.75-$10.00/bu picked up on farm. Overall dry beans prices have increased due to reduced production and lower quality. Dry bean price transparency is difficult as most of the production in Western Canada is produced under production contract with very scant spot business ever done. Faba quality and production quantity varies strongly across Western Canada, which is actually the norm. Number 2 export quality zero tannin faba bids are thin but, have achieved $8.50 fob farm for top-notch quality. Feed faba market is trading a little plus or minus either side of $6.00/bu picked up on farm.
The feed wheat market is a tough one to pin down lately as high moisture, light weight and movement windows seem to vary price indications greatly. Recent trades on 58 lbs and dry product range from $4.65 to $4.90/bu picked up on farm for movement into the Jan-March window. In many cases the window has closed for moving product out before Christmas or into early January, but the occasional opportunity does pop up, usually carrying a bit of a discount. Milling quality (#1) CWRS bids have been at $6.10 to $6.25 delivered into elevator for movement pushed out into summer on the latter price. We have some buyers looking for durum primarily in a few areas around the south end of Saskatchewan so if you have a spec sheet you can share with us, we can work up some bids. High moisture milling durum will have some drying options as well.
Recent flax production numbers out of StatsCan have come as a surprise to many around the industry at only 486,000 MT. Many expected this number to come in around 567,000 MT. This estimate comes mainly from expectation of a very high abandonment rate of 10.5%. Winter and spring harvest could improve this number but expect quality to be poor on anything left standing. This news hasn’t changed the market for flax thus far, with milling quality bids still out for $14 FOB farm and #1 bids hovering around $13/bu FOB farm. Movement for all flax is getting pushed out to January-March delivery.
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.