Barley markets remain unstable with some purchasers indicating feedlot values have fallen further over the past week. At this point, any potential for upward movement before harvest seems unlikely and an increase in producer sales this week may reflect some “acceptance” to that fact. Old crop feed barley continues to trade in the range of $4.75 to $5.00 per bushel FOB farm in Sask and just under $6 per bushel FOB closer to Lethbridge, with deliveries extending into the spring and possibly summer months. Corn supplies continuing to hit feedlots at cheaper levels, coupled with favorable winter weather patterns, have kept this market at bay. New crop values persist at similar levels to old crop, with buyers not eager to pay premiums above current market value. The malt barley market presents an uncertain narrative, as maltsters remain reserved in their purchasing.

There is a lack of noteworthy developments to report in the wheat market this week. Indicated bids for #1CWRS range between $8.50 and $9.00/bu delivered to various locations across the prairies, without much enthusiasm from buyers to offer higher prices. Some pockets of $8.00 per bushel FOB farm feed wheat are still evident, although these values are not likely to be sustained indefinitely. Anticipation surrounds another Turkish tender slated for next week, though it’s speculated that purchases may be made from Italy, thus having minimal impact on Canadian products. With the 2024 harvest drawing closer and an overall lackluster world wheat market, incremental price spikes seem unlikely. Discussions within the wheat market remain subdued, as buyers are cautious about accumulating excess inventory, while sellers are hesitant to make sales and accept current values. It will be interesting to see what develops in the coming months, but with a lack of bullishness in the market, current values warrant some consideration.

It is no surprise that mustard markets have experienced a period of subdued activity over recent weeks. Export demand to the United States has been quiet, particularly impacting the yellow mustard market. Additionally, competition with Russia and Ukraine for mustard sales in Asian and European markets has led to reduced demand from local purchasers. Pricing for yellow mustard ranges from 61 to 63 cents/lb FOB farm for old crop and 58 to 60 cents/lb for new crop with an Act of God clause. Brown mustard is priced at 40 cents/lb for both old and new crop, while spot oriental demand remains virtually non-existent. A few new crop oriental contracts have been put on the books at 50 cents with an Act of God clause, though the buying pool is not deep. We still have a good supply of all types of certified mustard seed available with free delivery to your yard. We cannot stress the importance of starting each mustard growing season with new certified seed, as cleaning your own can carry significant downside risk and is generally not financially beneficial. Mustard seed loses grade quickly due to weed seed contamination and with reduced purchase demand, especially for low grade, these contaminants are likely to play a bigger role compared to the last few years. Call our office to discuss further.

Flax markets are sideways this week, burdened by a large carryover despite a reduction in planted acres. Exports are slowly progressing, and farmer selling remains subdued as we adapt to lower prices. China’s ongoing utilization of flax stockpiles sourced from other regions has limited our market share, leaving us reliant on sales to the US and parts of Europe. On-farm values have seen trades around $15.50/bu FOB farm on the east side of Saskatchewan for both old and new crop contracts. Old crop contracts are based on June/July movement, while new crop contracts include a 10 bushel per acre Act of God clause for movement in the fall. Despite expectations of low flax acres, it may still take time to work through our large carryover unless unforeseen demand emerges.

Oat prices have remained relatively stable over the past several months, and this week is no exception. Prices are hovering around $4.75 to $5.00 per bushel delivered for a #2 milling grade, while feed prices sit in the range of $4.00 to $4.15 per bushel picked up. The recent StatsCan report didn’t bring any significant surprises. While the 2023 oat crop was fairly decent, there were fewer seeded acres compared to 2022, resulting in lower production. However, the large carryover from 2022 has kept oat supplies ample in the market, providing decent coverage for buyers heading into the summer months. If you’re looking to create bin space before the 2024 crop is harvested, pricing out some oats now would be advisable, as movement timelines are already being pushed out.

Lentil prices continue to stand out as one of the few bright spots in the markets. While other crops like maple and green peas, yellow mustard, and canary seed are still showing some good to great values, they represent a shorter list and don’t account for significant acreage overall. Breaking down the lentil market, red lentils still hover in the low to mid-thirties range for both new and old crop values, converging sooner than usual. However, it’s the greens that shine the brightest, with spot prices for small greens reaching up to 75 cents per pound for #1 quality, medium green spot prices around 52 cents per pound picked up in US dollars, and #2 quality large greens flirting with the high 70s to possibly 80 cents per pound in the right areas. New crop prices indicate around 37 cents USD for richleas, 52 to 53 cents for #1 small greens, and in the range of 57 cents for #2 large greens, offering unreal starting points. Considering the increase in seeded acres not only locally but globally, it’s wise to assess the price difference between lentil colors and follow the potential profitability. Contracts come with an Act of God clause covering quality and quantity, mitigating risks associated with weather issues. Hedging bets on green lentils seems prudent given these dynamics.

The chickpea market remains buoyed by small incremental sales and just enough interest from buyers to handle those sales, albeit with a preference for larger-sized product. Bids sit in the low to mid 50 cent/lb range on across-the-board sizing, with a maximum allowance of 10% for 7mm. Negotiation room exists for those with large caliber chickpeas, with a general spec being over 30% 9mm. Although the overall on farm supply seems minimal, it may not translate into a big price movement as it limits the ability of putting on any further significant export programs. Canadian exports in December showed a 14% increase over the previous month, according to StatsCan, and were up more than 15,000 metric tons from a year ago. India’s decision to increase chana acres due to high prices adds another dimension to the market, with weather conditions during the remaining growing season in India worth monitoring. New crop prices with an Act of God clause are holding steady around $0.42 to $0.45 per pound FOB, contingent on farm location.

The canaryseed market continues to display stability this week, with reports indicating it has emerged as an alternative seeding option considering the higher potential returns compared to other cereals. Conversations regarding new crop contracts have been initiated, with values sitting at $0.34-$0.35 per pound FOB farm, including an Act of God clause for at up to 15bpa. This pricing scheme presents a favorable outlook for the fall and growers should seriously consider locking in some tonnage. Spot values remain robust in the range of $0.40 to $0.41 per pound FOB farm, and delivery options might even be available for March, though it’s advisable to discuss this with your merchant. Short-term volatility in the canaryseed market is not anticipated, though large tonnage sales may still cause a hiccup in the market. Canaryseed remains a viable option for both new and old crop sales at this point. Additionally, planting seed is available in certain areas, so call your merchant for details.

Canola markets are encountering resistance around $600 per metric ton, and analysts foresee little change this week due to the Lunar New Year holiday in China and other Asian countries. Producer deliveries for the first week of February totaled 348,000 metric tons, with higher usage attributed mainly to robust exports (246,600 metric tons) and domestic demand (188,300 metric tons). While last week’s exports of 246,000 metric tons marked the second-largest weekly volume shipped this crop year, the Lunar New Year holiday is expected to dampen trade activity. Locally, cash bids range between $12.50 to $13.00 per bushel delivered to Saskatchewan plant, with some bids at $12.00 to $12.40 per bushel FOB farm in the southeast corner of the province. New crop prices currently hover around $13.00 to $13.25 per bushel delivered to Saskatchewan plant, contingent on the month for fall delivery.

Pea markets experienced a slight increase last week but have since slowed down again. There may still be opportunities to reach highs of $14 per bushel delivered to facility for #2 Yellow peas, albeit on a case-by-case basis and subject to confirmation with freight adjustments for on farm pickup. Demand fluctuations can create temporary interest to meet needs before quieting down again. Targets play a crucial role in guiding buyer purchasing decisions, so consider them in your marketing strategy. Green peas have seen some activity as growers seek highs of $18 per bushel FOB farm, but market pressures seem to be pushing prices down again. The highest trades this week reached $17.50 per bushel FOB farm for #2 Green peas, with some buyers seeking off-quality high bleach (15% and over), with limited success. US neighbors have shown interest in bids for both old crop yellow and green peas, but cross-border freight costs make trade challenging from North to South. With ample bushels in the US and unappealing local bids for sellers, feed markets are actively seeking options based on downgrading factors. If you’re considering selling, reach out to explore available options.

Bearish pressure continued due to Brazilian harvest progress and weak Chinese soy demand during the Lunar New Year holiday. Bids are in the range of $14.50-$15.00/bu FOB farm, location dependent. Dry bean exports to Mexico have bolstered the market. Pinto and black beans are fetching attractive bids, with black beans leading the way and pintos a little slower to respond. New crop Canadian faba acres are anticipated to see an uptick this coming season. New crop bids for #2 quality tannin varieties are in the $10 FOB farm range, while old crop #2 faba bids are in the range of $11.50-$12.00/bu FOB farm. Feed quality values are near $10.00-$11.00/bu FOB farm, location dependent.

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.