Yet again another slow week for canaryseed. Markets are very quiet right now and we hope once Thunder Bay opens and allows more shipping, we might see prices shoot up a bit. As stated last week, the usual January /February bump has not happened yet and buyers are comfortable with the little bits they are buying here and there. Not much differs from one week to the next. Canaryseed prices remain around 20 c/lb for sound quality, depending on location. There has also been some opportunity for new crop contracts around $0.20/lb as well delivered into plant with an Act of God. Please contact your Rayglen merchant for more information or to put in a firm target.
A small and short change in yellow pea pricing had producers showing interest. $7.00/bu picked up was available in Southeast/Central Saskatchewan for a short while, but as we write has been put on hold due to large volumes being booked. As the buyers reevaluate their positions, we may see them come back to the table, so keep in touch with your merchant. Green peas are still trading around $8.00/bu picked up on large varieties. Stat reports show that pea bids usually go sideways and export volumes slow during mid-winter; with May – June seeing a dip in pricing. However, this year has been much different from any other. Green pea supplies are lower, showing the downside potential could be limited. Yellow peas aren’t showing large upside potential; taking advantage of small price increases in bids may be beneficial (i.e.: the $7.00/bu in certain areas).
No big changes for the chickpea market this week. New crop large kabuli programs are still around and producers may be able to catch a contract at 36 to 37 cents per pound for #2 quality with an Act of God. The contracts include discounts for lower grades, prices for split and small product and FOB farm pricing. If you require kabuli seed, we may still have some options on common product and can offer delivered to the yard prices. If you have interest in growing new crop desi chickpeas we may have some interested buyers for the fall, so call the office for further information. The current market on large kabulis remains in the mid sixties range for good quality, but bids are few and far between as product is extremely hard to come by.
Not much news in the oats market as bids appear to be steady this week. Some slight weakness in feed oats as the top end of the range seems to be dropping down a bit. Prices vary between $2.00-$2.15/bu picked up depending on location and quality of the feed oats. #2 CW oats hold between $2.30-$2.50/bushel picked up in your yard. The price is better the closer you get to southwest Manitoba. We do occasionally see better bids pop up for short periods and a firm target seems to be the best way to catch those bids. If you have your firm value in mind let your merchant know and we can put it out there for the buyers to take a look at.
Flax prices are sideways this week with milling quality at $12.00/bu picked up for a May / June type movement. #1 quality varies in pricing, ranging from $11.75-$12.15/bu delivered to plant. Values in the US have moved up slightly and Canadian exports to the US have been positive, but prices will likely have to have higher relative values for an increase in Canadian flax to move down south. Chinese imports rose, however Russian exports accounted for 10,400 tonnes of the 44,000 tones moved. Even though StatsCan indicated some tight supplies, the market remains unresponsive. If export volumes strengthen, it could cause some aggressive bidding. Analysts still write that there could be some gains in prices later in the marketing year. New crop prices are indicating $12.00/bu picked up in select areas with an Act of God. There are still markets for off-grade flax as well.
Wheat markets haven’t seen too much change over the past week. #1 milling wheat continues to hover around $7.00/bu delivered plant based on 13.5 protein for summer deliver in certain locations. Durum values have remained fairly flat as well, with south east areas seeing bids of $7.75/bu picked up on farm for #1 US quality product for May/June delivery. New crop durum bids seem to come and go. Growers looking to lock in some product should get their targets in line to assure they can get in when more business becomes available, as programs tend to fill quickly. Feed wheat values remain firm, with most areas able to attain $5.00/bu picked up on farm. Some areas are creeping north of $5.00/bu where freight makes sense. Movement continues to get pushed further out on feed wheat as well as milling wheat and durum. Values don’t seem to be seeing much change, movement is a moving target at this time.
Feed barley this week has seen some movement upwards for a change. We are seeing corn values starting to move up, which makes it more expensive to buy. Consequently, feedlots are looking at more barley again. Barley supplies are low so prices are going to have to be attractive to get any. Feed barley has been trading at $4-4.25/bu FOB farm for pushed out movement, pending location. You may be able to move a few loads before road bans come on for prompt delivery, but not a lot of tonnage. Prices for quicker movement will be around that $3.75-3.90/bu FOB farm. Buyers are wanting to see malt offers in certain areas so talk to your merchant if you are interested.
Lentil prices have been up and down this week, on par with the rest of the markets. The CAD is having some effect on prices as well. Reds have traded at 17.5¢ and up to 18¢/lb just depending on the mood of the market. Target pricing seems to be the best way to get those values closer to $0.18. Large greens pricing is also unsettled between different buyers, with the best bid this week at 29¢/lb FOB. Buyers are looking for limited tonnage on new crop large green lentils, new crop small greens and red lentils. Hedging some new crop pricing is not bad idea especially if you are planning to carry some stocks forward. For example: Book new crop reds today at 18¢, if we have a crop failure that contract is covered by an Act of God, and the price manages to go up due to shortage, sell last years crop that is still in the bin. On the other hand, if we have an average crop, prices are likely to drop, so at least you cover costs on the first 10 bushels and wait to market the rest. Taking 10 bushels/acre off the table will also make some bin space for next fall. Buyers in the middle east are saying that India is quiet and not looking to buy anything at the moment. They also report that crops look to be average yielding, adding to the stockpile of grain. They are not expecting any earth-shattering news that will change the market place in the near future.
Canola has had a decent week of trading, as nearby contracts broke above the perceived $500/MT resistance level on Monday. Spill over from soy markets has kept canola propped up for the most part. After small losses today, due to a stronger CAD, March sits at $503.80/MT, while July futures sit at $512.50/MT. Basis levels remain relatively unchanged for another week, keeping bids around $11.00/bu delivered. Rayglen has a small program available for Clearfield variety canola. This program offers roughly a $0.50/bu FOB farm premium compared to local markets. Please get in touch with a Rayglen merchant with area and bushel amount to take advantage of this program. Please keep in mind, this is Clearfield variety only.
Soybean futures have continued their lofty trajectory driven by continued worries about the weather in Argentina. Last week’s USDA report revised Argentinian soybean production down by 2 million tonnes to 54 million tonnes. The same report also reduced its 2017-18 U.S. soybean export forecast. Based on Brazilian export competition, the USDA lowered its export estimates by 60 million bushels. The Brazilian harvest is clipping right along. Producers are beginning to shave yield estimates based on wet harvest weather. Another factor in the recent soybean rally is the sharp drop in Malaysian palm oil inventories and the resulting increase in global veg oil futures. Local soybean bids are a little over $10.30 FOB farm range depending on location. Local faba bean bids are in the $5.75/bu FOB farm range for feed and limited export opportunities at $6.25/bu FOB farm.
Markets maintained their flat tone this week on mustard prices. Not much change as buyers have stabilized new crop and old crop pricing. Spot prices are solid and the very strong spot brown mustard price continues. Brown in the bin is trading at 44-46 cents/lb depending on movement, yellow solid around 35 cents/lb, and oriental about 31 cents/lb depending on variety. All the spot prices are picked up in your yard and can be moved fairly quickly in certain cases. New crop bids are being bid around 32 cents/lb on oriental, 34 cents/lb on brown, and about 35 cents/lb on yellow. All new crop contracts are picked up in your yard and include a full Act of God clause. If you are looking for any seed, we have certified yellow and oriental, with some common brown available at very attractive values that include delivery to your yard. This seed can also be treated with fungicide, insecticide and now Jumpstart as a new option! **For anyone who has bought mustard seed this year and would like to add the Jumpstart treatment for an additional cost, please call the office and we would be more than happy to go through the 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.