Feed wheat opportunities remain abundant with relatively good bids across the board. As we know, there has been a lot of high moisture and light feed wheat being shown to buyers and this will strongly play a role in the value. Getting some general specs such as weight, moisture and in some cases protein, will help us find the best option for your product. This week bids range from $4.60 to $5.10/bu picked up based on a min 58lbs and Max 15% moisture. Normally, the closer you are to Alberta the better the price is, but recently we’ve seen some action around central Sask in the $5.00/bu range on farm. For the most part, movement is quoted as Jan-Mar, but there have been some opportunities to move product sooner popping up. Our milling bids are slim lately, but as an indication, #1 CWRS wheat with 13.5% protein sits in the range of $6.40 delivered March, with some carry for Apr and May. There are always buyers looking for good quality durum as well and buyers have been asking to see producers spec sheets to give accurate bids.
Flax bids remain sideways this week with milling prices at $14.00/bu picked up. Number 1 flax prices vary; however, a good indication is $13.00/bu FOB. Quality on flax strongly varies this year, so moisture and weight are taken into account on pricing. There is already some projection from analysts that flax acres will increase for the 2020 crop. This would allow for more export volumes in 2020/21 supplies. However, the fact remains that the Black Sea region is a stronger competition for Canadian flax supplies. We can expect domestic use to be steady though. Yellow flax bids also remain steady over the last month with $16-$16.50/bu FOB being bid in most cases. New crop prices are also popping up for milling quality flax in that $12.50/bu picked up range, including an act of God.
Another stable week for lentils across the board as large green, small green and reds continue to trade through the office. Large green lentils have some life in the higher quality markets at 27 cents on 1/X2 delivered, #2’s are still trading at 24 cents FOB and 20 cents FOB seems to be the mark for X3 and #3’s. Red lentils are trading between 20 and 20.5 cents FOB for #2 this past week with many growers hedging some product. Markets will likely remain the same until after Christmas as buyers will likely be quiet. We’re still waiting for new crop pricing for all lentils as no one wants to step out yet and take the risk. Hoping this small upward trend continues into the new year, but it’s still uncertain.
All markets including chickpeas have quieted down as we inch toward Christmas. Buyers are still on the lookout for poor quality chickpeas with their first request being pictures and samples. Seems with the variety of damaged product out there no two peas are alike, and each carries a different value. Clear quality images up close and from a far can go a long way in marketing and time saving in a volatile market. Discussion for 2020 seeding intentions have also become more regular and chickpeas number are estimated to be down almost 30% from 2019. This would still put us on the high end of a 5-year average, but a healthy swing back to a level supply and demand number. No change in values from last week and no pressure from the market to procure for the time being.
Mustard markets are sitting flat as we enter the Christmas season. The picture is not clear yet on how many acres might venture into mustard next year, but very attractive new crop values, especially on yellow mustard should get some attention. Still, we’re in the same boat as last week where buyers feel confident in their bids and the supply of offers, that are a cent or two above market, are not getting much interest. Pricing for this week has yellow trading at 40 cents FOB, brown trading at 28 cents and oriental sits at 23 cents for Cutlass and a bit higher for Forge and Vulcan. Please call us about New Crop bids on all mustards. As well, seed has been booking for all varieties so please call your merchant for prices on certified and treated options delivered to your yard. There is nothing more important than starting your new crop off right using certified seed, especially with mustard.
With the holidays just around the corner, most movement timelines get pushed to January – February in the pea market, while firm targets seem to be attracting the most interest from buyers. Currently, green pea targets are triggering at $11.50 – $12.00/bu FOB with the top end getting a little less buyer interest today as short to medium coverage seems to be reached. Yellow peas are being bid at $7.00/bu delivered, with $6.50 – $6.75/bu picked up trading. As we wait to see if India will provide support by coming back into the market, we may see bids move sideways for the short-term. We also still have maple pea values at $9.00/bu FOB farm. Looking towards new crop, there hasn’t been a lot of firm posted bids with an act of God, but we suspect January is when the programs will start to show up.
The feed barley picture remains the same as it has been for the past few weeks. The prairies produced a significant amount of barley this year and generally we still suspect some price softness. The “perfect storm” of barley not being market ready as well as being very far away from it’s end destination (Southern Alberta), has been keeping prices propped up, despite the large tonnage available. Bids sit between $3.60-$4/bu FOB farm depending on area and recent reports of elevator trains filled with barley and shipping to Alberta may put pressure on these values, so hedging some product may not be a bad idea. We also have some opportunities on higher protein malt barley. Give us a call to discuss pricing options.
Oats continues to trade sideways again this week as not much has changed in this market. Feed pricing continues to trade in that $2.50 – $2.80/bu FOB farm range with milling holding steady at $3.00 – $3.80/bu FOB farm, with the stronger prices for those closer to that south east corner of the province. Looking ahead, new crop pricing is out there with just straight 2020 movement or if you are looking for a little bit of a better propped up price there are options for even splits between 2020 and 2021. Call your Rayglen merchant for pricing specific for you.
The canola market has seen some increases this week and continues to trend in the right direction for growers. Much of this uptrend comes from the US-China phase 1 trade agreement. Canola has been looking for a reason to go up following the challenging harvest we endured this year and piggy backing soybeans after the agreement provided the perfect fuel. Again, with the challenging harvest that has been had, we remind growers to check their bins as we have heard of canola that was binned dry, starting to heat. At time of writing, January futures are at $464.40/MT with some carry to March at $473.60.
The canary market remains quieter in recent weeks as lots of tonnage was bought into the first few months of 2020 and the market seems to be satiated for the time being. We still have a few opportunities to move some in the nearby (December/January) for a cent or two off the recent highs of 30 cents, but any interest at 30 cents in the yard is pushed into April or beyond. If you have not moved any tonnage at the current levels, you should strongly consider doing so as these are still very strong values from what we normally see on canary and they won’t be there forever. The chatter that acres will be increased for the 2020 planting season has a few sellers tossing out offers for next fall, but nothing has triggered on those at time of writing.
Lighthizer’s “Phase 1” announcement of the US/China trade agreement has been a solid shot in the arm for commodity markets. Soybeans have been gaining strength for last two weeks and now have the potential to make significant gains if positive trade negotiations continue. Local soybean bids are trading in the range of $9.75-$10.00/bu picked up on farm. Dry bean market will remain supportive well into the new crop contracting period, predicated on disappointing production levels this fall. Faba bean market is trending at historical average price levels. This is largely due to the traditional global faba exporters of Great Britain, France and Australia all coming back online as active global exporters. This places Canada in a 4th position within the globe and local prices reflect this. Number two export quality is in the range of $8.50 fob farm and feed is trading a little plus or minus either side of $6.00/bu picked up on farm.
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.