Yellow peas took another bump in pricing as supplies continue to dwindle. Old crop now trades at $10.00 – $10.50/bu picked up with movement getting pushed out to Spring. Green pea demand appears to be slowly increasing as more buyers will look at $9.50/bu picked up ($10.00/bu delivered) this week. As per reports, China continues to be the dominant buyer, accounting for 80% + of Canadian pea exports in recent months. The Black Sea Region has seen pea prices move up, which will motivate growers to boost acres. We can expect this to increase competition in Chinese markets, which may soften pricing in the future. In new crop markets, green peas remain at $9.00/bu picked up, while yellow peas are trading at $8.50 – 9.00/bu FOB (the premium is for a glyphosate free market). Maple peas have spot bids at $10.00/bu picked up, while $9.00/bu picked trades on production with an Act of God.
A slight jump in the flax market this week. Old crop prices range from $20.00-$23.00/bu picked up depending on location and movement timeframe. New crop offers are also triggering around that $16.00/bu mark, picked up with an Act of God. Strong exports and tight supplies have driven this market to hit historically high values. For those with flax still in the bins and/or considering planting new crop acres and still wondering where the top of this market is, keep in mind it’s a lot tougher to catch a falling knife. Selling in increments is a good marketing play and we urge growers to get some product booked as the downside is much larger than the up. Canadian flax acres will have some competition from overseas and likely to the South of us, all things to keep in mind if you are still debating on whether or not to lock in some new crop.
The barley world has not changed much over the past few weeks with the biggest push still being on the feed side of things. Old crop values trade around $6.00/bu picked up with the availability to lock in new crop at the $5.00/bu range FOB farm. If you are starting to toy with the idea of going this route, think fast; everyone is jumping at the bit and feed barley seed is becoming tricky to obtain. However, that leaves you with a great opportunity to try out one of these new high yielding malt varieties. The worst case scenario is that it doesn’t make malt, but now you can still sell it into a feed market. Given current pricing on feed however, that wouldn’t be such a bad scenario. Last year malt was trading around the $5.00/bu range, but we’ve surpassed that this year and feed carries a lot less risk. As it stands now, maltsters have been quiet, but a few are bidding $6.00/bu on new crop to try and compete against the feed markets. Our suggestion: seed a newer variety malt and pencil in the return at feed value to start. If that return makes you happy, which it likely will, then come harvest time if your product makes malt spec, you now have two markets to explore.
Yet again the wheat market continues shine. Feed wheat prices now trade between $7.25 to $7.90/bu FOB farm across the Prairies. Location and freight costs will determine firm bids, but as a rule of thumb, the closer you are to Southern AB, the better values will be. Milling CWRS has been trading between $7.70 to $7.90/bu delivered for a #1 with 13.5% pro, while the 12.5% market shows values between $7.65/bu to $7.80/bu delivered. Durum for fall delivery has been trading between $8.25/bu to $8.50/bu FOB farm. For new crop durum, the best bids are seen in Southeast SK. At these values, it is not a bad idea to get something on the books to hedge downside risk. Spot prices on durum have been indicated between $8.50/bu to $9.00/bu delivered in many cases this week.
It was another hot week in the canaryseed market as buyers look more aggressively at getting new crop on the books for Fall. Values are now being bid around $0.28/lb FOB farm, with an Act of God. This is a good starting point to get 10bu/acre locked up, seeing as the projected acreage is up almost 10% from last year. Old crop bids are still floating around $0.31/lb FOB farm for quicker movement, and possibly $0.32/lb FOB farm for delivery into Spring/Summer. Offers are always a good idea if you have a price in mind when markets are volatile. We also have many seed options still available, so if you find prices are attractive and you want to get in on the action, let us help you out!
It is estimated there will be a 24% drop in chickpea acres compared to last year, but we expect to see a good carryover in stock unless spot bids move significantly. A few weeks ago, the thought of a significant move seemed moot, but as we write, spot contracts are now trading at $0.30/lb FOB farm. Keep in mind, chickpea demand is limited, not limitless, so now may be a good time to get some product signed up. Feed/sample chickpeas continue to see interest at $0.19/lb off the farm and new crop values still hover at $0.25/lb FOB farm with an AOG. If chickpeas are something you are thinking about moving, call to discuss your options today!
The oat market remains strong as North America’s appetite looks to have increased an estimated 5-10% due to Covid. That coupled with strong importing from the likes of Chile, who is typically not in the oat mix, but has stepped up to the plate and consumed a large piece of the pie, has really help to strengthen pricing. With all that said, milling prices hold strong with bids around $4/bu picked up on the farm, give or take depending on farm location. New crop is also trading strong with $4/bu picked up trading in East Central Sask for Jan.-Mar. movement 2022. Supply and demand charts do peg this commodity to drop in seeded acres so it should prove to be interesting just how much oat acres do pull back. On the feed side, we still see trades with a range between $3 – $3.50/bu picked up on the farm.
Soybean prices are following corn today. Trade overshot the landing on shrinking soybean stocks and market adjustments are occurring today. That said, the U.S. could run out of soybeans before 2021 harvest. Local soybean bids now hover around $15.50/bu picked up depending on location. Faba bean export bids remain virtually non-existent due to a return to global trade normal. Production in Australia and parts of Europe are back on track and importers are falling back into previously established buying relationships. Feed faba bids are near $7.50/bu FOB farm location dependent. Current crop dry bean bids have come off harvest highs due to abundant North American supply. We continue to hear reports of new crop seed shortage due to poor germination. New crop dry bean contracts are available at attractive price levels. Contact Rayglen to book your acres.
After trending slightly upwards for most of the past week, May and July canola futures have fallen back down today, but are still higher than the same time last week. May futures are at $682/MT, compared to $674/MT last week. July futures are at $654/MT, compared to $650/MT last week. Most of the losses today are coming from weakness in soybean futures as well as palm oil dropping slightly. The CDN dollar is up slightly as well and is contributing to losses. November canola futures continue to trend upwards and sit at $563/MT, compared to $553/MT last week. This is translating to local new crop bids above $12/bu and are worth taking a look at if cash flow will be needed come harvest.
The lentil market has been stronger again this week as bids on large greens creep up to the high thirties on old crop #2 product. This should, and has signaled some sales again for growers. New crop large green values are up again a bit as well with bids for #2 or better at $0.30-$0.31/lb picked up on farm with an Act of God. This week reds are trading at $0.29 FOB or $0.30/lb delivered to plant on product still in the bin. New crop values continue to trade around $0.25/lb FOB with an Act of God or $0.26/lb on a deferred delivery contract. Small greens have shown a touch more interest as of late with some #1 old crop bids up to $0.32/lb FOB farm. If you’re in the mood to price new crop we have some buyer interest at $0.28/$0.25/lb picked up on farm for #1/#2 quality with an Act of God. Indications from analyst’s state that they are expecting lentil acres to retract based on strong values in other markets grabbing acres along with losses to disease pressure, but we still expect lentils to maintain a strong presence here in this office.
Again, as expected, the mustard market remains very solid. Spot bids are still showing $0.41-$0.42/lb on Yellow mustard, $0.37-$0.38/lb on Brown mustard and $0.30-$0.32/lb on Oriental mustard. Talk to your merchant about offers if you have a target, as we may be able to negotiate on price and movement. New crop bids are strong as well with yellow sitting at $0.42/lb and brown at $0.36/lb FOB farm with an Act of God. Forge or Vulcan Oriental are showing stronger bids as well and have traded as high as $0.34/lb for Sept. to July 2022 with an Act of God. Cutlass is now at $0.32/lb for new crop picked up with an AOG, which is a very strong starting point. Please call us to discuss all your new crop movement times and seed options. We have all varieties of seed, either treated, or un-treated and our prices include delivery to your yard. Call now as seed has been going fast this year.
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.