Feed wheat prices remain unchanged the past few weeks, with most areas of the province at $4.75/bu picked up in the yard. Let your merchant know your exact grain location as certain spots are able to reach $5.00/bu picked up due to freight advantages. Most buyers are not too concerned with the vomitoxin numbers on the 2017 crop, but those questions will arise for anyone looking to sell the remaining 2016 crop in the bin. For product with vomi, the market is a little lower, but still better than last year with the glut that was available. $4.00/bu or a bit better at the yard is attainable on a max 10ppm product. We still have durum bids in the far south east Sask at or close to $8.25/bu picked up for late winter/early spring delivery on a #1 with 13.5% protein. Red Spring bids are a little tougher to find these days, but for #1 quality with good protein we may be able to track down a bit of interest, so touch base with your broker.
It has been another consecutive week where canaryseed has done absolutely nothing. Prices are still sitting around 20c/lb FOB farm, but expected as seasonal patterns and trends throughout October and November are realized. Firmness in the market is usually seen in late February. As per Stats Canada, the average yield for 2016 was 20 bushels per acre, this this past year is sitting around 24 bushels per acre. Production differences are not likely enough to impact prices. 2017 production was estimated to be around 142,000MT, which is only down roughly 2,000MT from 2016.
The pea market saw a few more trades this past week when green peas hit $8.50/bu delivered. Today, green peas are sitting at $8.25/bu delivered. Yellow peas are seeing values of $6.50/bu delivered. If you are in the south east $7.25/bu picked up is available on yellow peas; which is a huge price in today’s pea market. With India’s demand being limited, new export options are being sought out. China is on pace for record export levels due to the Indian blockade. Long-term however, this won’t be as helpful as China’s inventories will be built up and 2018 exports will need to be low. Reading through a stat report, the rumored tariff on desi chickpeas could provide some support for the pea markets, but it is quite unclear on what the impact will be.
The brown flax market hasn’t seen much change this past week for either milling or #1 quality. Stat Can released their November production estimates today pegging flax at 548,000MT, which is down from 2016 production at 588,000MT. This is a 6.8% reduction from the previous growing year. Milling values are still trading at $12.50/bu picked up on farm for Jan/March movement. There are some buyers that may entertain a slight premium for later delivery depending on location. #1 quality brown flax carries 25-50 cent/bu discount for similar delivery. Yellow flax hasn’t seen allot of demand as of late from buyers, but growers looking to move product should consider some targets and see what interest can be generated. Growers with poor quality yellow flax can find homes into similar markets as #1 brown flax. New crop business hasn’t really been done on flax so far, but there are a few buyers that are starting to show interest in getting some acres on the books for next year. Growers should keep in touch with their merchant.
The chickpea market is holding steady with old crop values floating around 60c/lb on a #2 quality if they are sizing up. With the relatively poor yield in 2017 and producers barely able to fill contracts, there is not a lot left out there for seed. This has translated into a higher amount of inquiries on seed this year, paired with the very attractive bids on old and new crop. With the StatsCan report out today, it shows a 28.7% decrease in yield in 2017 from 2016, which is the reason we have such a high demand for chickpea seed. Bids on new crop values for the large type variety are 38c/lb, fob farm, with an Act of God on a #2 quality. We also have a bit of seed available, so call your merchant if you are interested.
The feed barley market is strong this week with corn trading a bit higher than previous weeks. With corn starting to move up in price, we are seeing our feed barley prices creep up as well. Feed buyers are starting to fill up for December movement on big lots, but may have some room for a few loads. Bids out there right now are around $4.00/bu FOB farm for a lot of areas, with movement from January-March. Offers are a great way to show buyers what you have, and to hit a high in the market so make sure you are talking to your merchant on that.
We have seen some action in red lentils, a small jump, but none the less buyers have shown interest at 17.5¢ to 18¢/lb FOB in the right location. Green lentils remain slow again this week with only a few companies showing buying interest. The 2017 StatsCan Production report came out this morning showing lentils down in acres from 2016 and up in yield slightly from 2016. Based on the Stats Can breakdown, large green lentil production is 485,200MT, which is the third highest production in the last 5 years. Reds were the third highest year of production in the last five as well. Other numbers that stand out from this morning is the carry in number of 405,000M. A reduction of exports for August-September shipping has been just about cut in half with at 379, 102 MT shipped. 2016 shipments totaled 743,469 for the same period. Based on this information carry out would be around 650,000MT. Things to watch over the next week is how the markets react to these numbers as well as the weather reports and condition of unharvested lentils in Australia.
Soybean futures settled down a little today after a recent run up driven by dry planting conditions in Argentina. Soybean planting in Brazil is 92% complete with Argentina at 42.5% and running about 3-4% behind last year this time. Some meteorologists are forecasting than even though La Nina could weaken towards the end of the month, it could strengthen a bit later and hang around longer. Keep in mind these are “weather forecasts”, but if accurate this would threaten world supplies of beans. The recent dip in the CAD, caused by the Bank of Canada holding interest rates, has had a positive impact on local basis and is propping up bids. Local soybean bids are $11.00/bu FOB farm range. Local faba bean bids are in the $6.00/bu range for feed and the faba export market has all but disappeared for now.
Oats continue their steady sideways trend as the holiday season approaches. We are still finding #2 CW bids to be around the $2.50/bu picked up in the yard mark. This price is dependent on location and strengthens the further south the oats are located. Feed oats still have decent demand with indications close to $2.25/bu picked up in your yard. We have buyers willing to look at off spec, heated, and light feed oats as well, so give your merchant or the office a call to find a price in your area.
The mustard market continues strong in December. New crop mustard trading has been brisk. Stats Can has rolled out their mustard acreage estimate around 550,000 acres up considerably from last year. If you are considering mustard as a new crop option, the prices and contracts are very attractive with 32 to 34 cents on Oriental, 35 to 37 cents on brown, and 38 to 40 cents on yellow. Contracts include an Act of God and are priced based FOB your farm. Spot prices are basically around the highs of the year, and trading has been steady. The spot prices for yellow and brown continue to lead the way for bids right now, with buyers showing interest at 43-44 cents per pound picked up in the yard for movement in the new year. Oriental sits with bids at 32 to 34 cent range depending on variety. We have seed available delivered to your yard also, call your merchant for details. This seed can also be treated.
Canola markets started the day off shaky with the release of Stats Can production report. They pegged this year’s crop at a whopping 21.3MMT, setting a new record over last years crop of 19.6MMT. Luckily for the commodity, the Canadian dollar took a half cent drop, on news of the Bank of Canada holding interest rates. This helped control and limit losses to a modest $1.70-2.00/MT. Bids remain relatively unchanged, with January futures sitting at $508.00/MT and basis levels still ranging between $15/MT & $25/MT under. This puts bids delivered to plant at roughly $11.20/bu.
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.