The pea market remains unchanged from last week. Buyers are still showing most of their interest in yellow peas, while green peas have had little attention. The price gap between the two remains virtually closed as yellows are bid at $9.25 – 9.40/bu delivered (the latter seen in North Central Sask) and green peas are bid at $9.00 – 9.50/bu delivered. Maple peas have softened a bit as well with $10.00/bu picked up harder to find and most buyers now posting $10.00/bu delivered. New crop values are still slow to come to the market with most of the grower attention focused on yellow peas. Recent reports suggest China has slowed their importing pace of yellow peas; however, China is likely to deplete our pea stocks, which will support prices. This, again, leaves us with all our eggs in one basket while relying on trade relations and demand staying strong out of China.
Feed barley future markets seem to be quiet due to the uncertainty of China’s continued purchasing interest. If China remains the key player in this game, then expect feed prices to stay strong into new crop. Today, a $5.00/bu production bid does not seem like a bad play, but lots are left scratching their heads and wondering if this price is going to go up. Well, if China keeps buying than yes, it more than likely will rise. However, if China turns their tap off, then these attractive on farm values are likely to dry up domestically. Locking up 25% of your farms production today may not be a bad idea and rolling the dice on the remaining 75% gives you the risk vs. reward challenge. On the malt side of things, we patiently wait to see which malting company is going to bite the bullet first, with the rest likely to follow soon afterwards. Initial thoughts would be a $5.25 – $5.50/bu new crop value, however maltsters may want to try and spread the gap between feed with bids closer to $6.00/bu. Due to other circumstances such as carryover of 2019 and a strong 2020 crop, they may not have the buying power to go any higher. A true supply versus demand scenario.
The flax market continues to see historically high values, for the time being, with spot prices on brown sitting at $18.00-$18.25/bu FOB farm and shipped by March. We have seen some better values being bid for further out (Jun./Jul.), and we encourage you to call our office for pricing opportunities. New crop prices on brown flax start at $14.00/bu picked up with many areas seeing slightly stronger bids due to freight advantages. The market is being supported with demand overseas into China and the EU. Yellow flax prices are showing a small premium over brown flax, but overall demand is much slower. Exporters are still trying to move flax out of Kazakhstan through various border points, while there are also reports that China has cut their railcar acceptance by almost half for the month of December. These are all factors to consider for those with product on the farm. If you are looking for seed for the 2021 crop year, call our office as we have some sources still available.
The milling oats market remains firm and continues to see strong pricing ranging anywhere in that $4.15 – $4.35/bu delivered in for Jan.-Mar. movement. Look for that to pencil out in the mid to high $3’s in most locations across Eastern Sask. If you are looking ahead to next year and wanting to lock in some new crop tonnage, give us a call and we will see what we have for bids specific to your location. On the feed side, we continue to have interest from our buyers in that $3.00 – $3.75/bu range picked up on the farm. Buyers are looking for a dry, min. 40lb oat and have expressed the possibility of some pretty quick movement.
Feed wheat values remain strong this week with trading being done at $6.00 to $6.50/bu FOB the farm, pending location and freight costs. Delivery on feed wheat probably won’t happen until the new year, with many buyers already filling their Jan./Feb. positions. Those on the fence about moving some product into this market should consider not only securing their target value, but also their target movement window. Milling wheat values are relatively unchanged with $6.50 to $7.00/bu delivered as the going rate in most cases. Bids are based off #1 quality and 13.5% protein. High quality Durum markets remain stable with spot bids at $8.00-$8.80/bu FOB farm pending location, for August pick up. A bit of new crop has traded over the past week at $8.00-$8.25/bu FOB farm pending location for Sept./Oct. pick up.
USDA reports continue to support strong soybean demand characteristics. Chinese demand shows no signs of tapering off and is likely to set import records. The strong recent run up has some analysts warning of a potential profit taking reverse; followed by further volatility. Local soybean bids now hover around $12.50-$12.75/bu picked up depending on location. A successful faba harvest in Australia has pushed Canadian product to the export sidelines and thus currently has most domestic product destined for feed markets. Feed faba bids are near $7.00/bu FOB farm, location dependent. Dry beans are finding recent support due to Mexico’s demand. That said, North American production levels are up sharply year over year and will thus have some dampening effect on bids. New crop dry bean contracts are available at attractive price levels. Contact Rayglen to book your acres.
The Canola market continues the aggressive push from last week as the Jan. futures drive past $638.70/mt this morning. Canola seems to be riding the coattails of soybeans as China keeps buying and a strike in Argentina strands cargo ships down South. Futures climbing and basis levels tightening has made the canola prices for late winter and early spring look pretty appealing. This is ideal for those with iron resolve that have not already sold out by this point. Delivered in prices for January top $13.50/bu in some areas and are pushing to almost $14.00/bu for the April timeline. It’s been a few years since we have seen the canola futures this high; dating back to 2013. Let’s hope this run up is similar to the sustained 2010 to 2013 high prices rather than the blip of 2008 where it fell as fast as it rose.
The week leading up to Christmas continued to show strong pricing, especially when it comes to brown mustard. There seems to be some concerns in the market concerning the number of acres being seeded this Spring, pushing brown up recently. Spot Brown mustard now sits at $0.34/lb FOB for January to February pickup. Yellow is sitting at $0.40/lb FOB farm for February to March movement. Oriental Forge variety sits at $0.29 for Feb./March, while Cutlass Oriental is now steady at $0.27 FOB for that same window. Surprisingly, new crop brown has popped up to $0.35/lb, with contracts being offered for September through July of 2022. New crop yellow is sitting at $0.42/lb and oriental as high as $0.30/lb for the same time period. Please call us to discuss all your new crop and seed options. We have all varieties of seed, either treated with 2 treatments, or un-treated and our prices include delivery to your yard.
No surprises in chickpea market this week. Much like all other commodities there is a bit of a flat line as we head into the final weeks of 2020. Old crop bids for #2 Large Kabuli are at $0.26/lb FOB farm Jan.-Feb. and sample/feed grade are around $0.16/lb FOB farm. No discussion around new crop other than potential acreage numbers next season as well as what the global supply chain looks like and how it might affect the value. As those uncertainties remain, buyers hesitate to put out bids and own acres just yet. If you are looking to switch up seed and need suggestions, please give a call.
Canary markets have remained quiet but firm over the past few weeks. We’re still seeing bids for a January-March timeframe in the $0.32/lb FOB farm range, with options for quicker movement with slightly lower pricing. We have yet to see any bids come out for production contracts, but we should see those starting in the near future. According to the CGC’s handling statistics, at the start of December we passed last years farm deliveries of canary, which should keep bids strong into the new year. As always, if you have a firm target price in mind on old or new crop, give us a call and we can get it posted up on our website for our buyers to take a look at.
As we approach the Christmas holidays, we see another quiet week in the lentil market. Since last Wednesday we have seen a total of 4 Lentil trades take place affirming our assumption of slow buyer demand. Buyers are also waiting to see what India does with the lentil tariffs at the end of the month which is likely contributing to the slower buying pace. On the other hand, sellers are also hoping that the new year will bring a little upside to values and are hesitant to make any more sales until January at the earliest. Bids remain the same as last week with red lentils trading between $0.24-$0.25/lb FOB farm, large greens at $0.32-$0.33/lb FOB farm and small greens $0.27-$0.28 in most cases.
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.