The canaryseed market remains unchanged, with no sign of life. It seems producers really want to sell their product, but do not want to let it go at current prices. At this point, buyers are not willing to pay up for product or push the market. There is definitely some separation between growers and sellers as buyers are comfortable with current supply. Pricing on canaryseed is sitting around 20c/lb FOB farm for sound quality. There is not going to be a lot of movement on the price of canaryseed. StatsCan estimates confirm buyers’ thoughts that supplies are comfortable and should keep the market balanced. Winter tends to be a slower export season. Values are likely to stay around 20c/lb which will most likely lock bin doors.
There is still a lot of discussion about where peas will be moving due to recent market turmoil caused by India. There are still more unknowns than usual about the pea market 2018/2019 supply and demand. We have had some opportunities to move yellow peas across the border at a favorable bid, compared to a couple weeks ago. If you are on the east side of Saskatchewan, bids range between $6.75-$7.00/bu picked up on your farm pending freight. Green pea bids are peaking out at $8.25/bu delivered. On higher bleach or smaller variety greens, we have $7.25/bu picked up on your farm. Markets are expected to be quiet with the holidays coming up, but these prices are holding better than a couple weeks ago.
Canola markets finished Tuesday on a stronger note. Although only a slight bump in future values, January closed $2.60/MT higher with March not far off, gaining $2.40/MT. There wasn’t much for supportive factors yesterday other than a little weakness in the CAD, but after closing down for the past few days, the market was likely due for a correction. This morning (Wednesday), January futures opened just under $495/MT and are currently tracking positive. Based on these values a negative $30/MT basis (freight to farm included), bids are coming at roughly $10.55/bu FOB. Most canola buyers are positing new crop basis levels now in the range of $25/MT under. Keep in touch with your merchant on changing markets and don’t forget to put in your firm targets to catch market rallies.
The chickpea market once again has changed very little and remains one of the best pricing opportunities available. For those who still have product in the bin that is unpriced and not seed stock, we have a few buyers looking for some firm targets at a little north of 60 cents/lb for #2 quality. If you have cleaned out the smaller seed for seeding purposes and just have the larger product left for conventional sales, there are some interested parties at higher levels, so touch base with your broker. If you are seeding chickpeas for 2018 you should be considering locking in at current levels. Granted this market is not as strong as it was early in the fall, but the acres will be significantly increased locally. Taking some risk off the table at high 30’s will most likely serve well.
The wheat market hasn’t seen much change over the past week. Feed wheat values have ranged from $4.75-5.00/bu picked up on farm, mainly depending on location. Growers should keep in mind that corn is being brought into feed lots at this time, which will likely put more pressure on feed wheat and feed markets in general. That combined with low protein issues on milling wheat with large discounts for protein has made feed wheat a better option for some growers than the milling market. Values likely won’t push much higher in the future and with corn coming into rations, we could see feed values grind lower. Durum values haven’t changed much in the last month or so, with bids still hovering around $7.50-8.25/bu largely depending on location. Growers interested should get specs to their merchant to work out a price in your area.
We have seen soybean values slip with futures slowly grinding lower this past week. Current bids are hovering around $10.55-10.75/bu picked up on farm depending on location. Faba bean values have not seen much change for the past month for feed quality, with buyers still indicating $5.75/bu picked up on farm again depending on location. Buyers have had a tougher time on the sales side for feed faba beans so growers may want to look at getting some product on the books while these values are still here. The edible market for faba beans seems to have slowed for the time being and we will have to wait and see if more demand and business will come in the new year.
Red lentils have lost a little momentum coming off from last week’s 19¢ high. Prices have settled back to 18¢/lb FOB. Buyers have started to show interested in lower quality red lentils. Large greens have not changed much since last week with trades still happening at 34¢ for x2 and 30¢ for #2. Buyers have interest in small green lentils today with most showing a 28¢ bid FOB farm. A few farmers this week put offers on new crop large green lentils. Targets where 30¢ for a #1 and 28¢ for a #2 on a 10 bushel an acre with an Act of God. So far, we have had no bites on the offer. Despite the lack of interest now, it’s a good way to show the buyers where the market should be. At this point, there is also no interest in booking new crop red lentils.
Barley this week has once again taken a hit from corn pressure. Corn is definitely making its way into more and more feedlots with a competitive price and over supply. As we move into the winter months we are seeing very nice temperatures so far, which doesn’t help the barley market all that much, due to feed lots not needing as much feed. If we see the new year bring in colder temperatures it might help our price strengthen a bit. As for right now we are seeing bids between $3.60-3.80/bu FOB farm depending on freight.
There haven’t been any mind-blowing changes in the oat market as status quo remains moving into the holiday season. #2 CW oats are hovering in the $2.40-$2.50/bu picked up on farm with movement likely sliding out to Jan/Feb. Feed oats also stay at the $2.10-$2.25/bu picked up mark. Both prices are dependent on location, with the best prices being in southern Saskatchewan. If you’re looking for a bit more for your oats, be sure to give your merchant a call about putting up a target offer above today’s market price.
Mustard contracts remain popular through December. Mustard pencils in strongly as an option for 2018 planting. All new crop contracts are picked up in your yard and include a full Act of God clause. New crop bids remain at 33-35 cents/lb on oriental, 35-37 cents/lb on brown, and 38-40 cents/lb on yellow. Spot prices have also been strong, with brown trading at 44-45 cents/lb, yellow at 43-44 cents/lb, and oriental at 32-34 cents/lb. All the spot prices are picked up in your yard. If you are looking for any seed, we have certified yellow and oriental, with some common brown available at very good values with convenient delivery to your yard. This seed can also be treated with a dual treatment. Call your merchant for more details.
Flax prices are sideways this week with milling quality still hanging around $12.50/bu picked up in the yard and #1 quality indicated at $12.00/bu. Yellow flax demand is still quiet with the odd bid around $14.00/bu. European prices remain capped by availability coming from the Black Sea region. With the Black Sea flax supplies, prices are not likely to impact the market like it did in 2009/10. Short-term gains are likely to be gradual rather than sudden as steady exports go through the pipeline. There might be some opportunities for new crop flax prices in the Southeast of Sask. Call your merchant to discuss details.
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.