Yellow peas continue to be one of the most sought-after commodities this week as buyers line up to purchase product. That said, the rally continues, and growers are able to take advantage of historically high pricing. China’s continued demand remains to be the main driving force behind this market, and with that, comes a dwindling supply. Bids now reach highs of $11.00/bu picked up with movement going into April – May. Green peas have pulled up slightly too, with bids hovering around $10.00/bu delivered. Maple peas are mostly unchanged, but we do have one bid at $10.75/bu delivered; about 25 cents higher than we have been seeing. The premium for yellows has slowly pulled these two prices up, however they are still lagging comparatively. New Crop yellow peas are indicated at $8.50 – 9.00/bu picked up with an Act of God, while new crop green and maple peas hover around $9.00/bu picked up.
Barley markets remain virtually unchanged this week. Feed values are still trending around that $6.00/bu mark for product sitting in the bin. Based on recent trades, we suggest targeting the $5.00 mark for new crop to give yourself a good starting point for the next harvest. The malt side of things is still quiet with values hovering near feed price. If you have good quality malt and can find higher bids than feed, now is a great time to consider moving it before the weather starts to warm up and you risk dormancy dropping off in the bin. These are some of the highest values we have seen for feed and malt in a few years, so the general suggestion is: don’t miss the train! Prices may be good now and holding out for an extra 10-25 cents may sound enticing, but keep in mind that if these prices do fall off, a $1/bu – $2/bu decline overnight is not unheard of. Take some time to consider signing up new crop barley as well. The per acre return at current value is trending at the top.
Feed wheat continues to hold strong with values trading between $7.20 to $7.85/bu FOB farm across the Prairies. The pricing depends on location and freight costs. Usually, the closer you are to Southern Alberta the better the price is, but opportunity does arise for product to head East. Make sure you keep in touch with your favorite merchant for updates. The milling CWRS market is considerably strong as well, with #1, 12.5% protein bids ranging between $7.70 to $7.90/bu delivered. Premiums are still being seen on 13.5% protein with bids at $7.90 to $8.05/bu delivered this week. New crop durum contracting has slowed down this week, but we suspect that growers can still capture $8.25/bu to $8.50/bu FOB farm on target in Southeast Sask. The spot durum market now trades between $8.50 to $9.00/bu delivered plant in many areas.
Chickpea markets see a bump this week with buyers taking interest in #2 Kabuli’s at $0.30-0.31/lb FOB farm. It is believed a World Food tender, that was bid on last week, is wholly responsible for this bump and once that position is filled, there will be a return to previous market levels. New crop values are unchanged at $0.25-$0.26/lb (Act of God vs DDC) FOB farm for a #2 quality. A bit of good news out of Russia as their export numbers have dropped significantly from 250k MT last year to 139k MT. This could mean opportunity for the small caliber into Pakistan for Canadian markets. Feed chickpeas maintain levels of $0.17-$0.19/lb depending on the down grading factor. It is believed there are not a lot of poor-quality chickpeas out there, so if that is something you are holding onto, give a call for pricing information.
Soybean futures spiked the other day based on a sharp increase in domestic soybean crush rates; driven by a robust US meat sector. Untimely rains have delayed the South American soybean harvest thus further stoking an already hot market. Local soybean bids now hover around $15.50 bu picked up depending on location. The Faba bean market remains focused on domestic feed demand. Feed faba bids are near $7.50/bu – $7.75/bu FOB farm, location dependent. Despite a large North American dry bean crop, the market remains well supported based on decent export demand. New crop dry bean contracts are available at attractive price levels. Contact Rayglen to book your acres.
Flax exports have been the highest since 2014/15, which has kept prices supported. In the month of December, Belgium was the top destination for flax followed by China. Prices still ranging anywhere from $20.00-$23.00/bu picked up, depending on location and movement. New crop is bid at $16.00/bu FOB with an Act of God with some chatter of potentially higher bids when accompanied by a longer delivery window. Latest import volumes from China show smaller volumes coming from Russia which could mean there is still flax held up at the Chinese border that has yet to be reported. Flax prices in the Black Sea Region have also continued to climb which should entice more seeded acres. At some point the market will flatten off or take a downturn, so if you are unsold on flax, look at locking some in as the highest bids are for delivery into Summer months ahead.
Canaryseed is still a hot commodity this week. We still have buyers looking for old crop in all areas of the Province with bids around $0.31-$0.32/lb FOB farm, depending on freight and movement period. Keep in mind as we inch closer to March, road bans will come into effect, so please be aware of that when you are posting an offer or doing up a contract. New crop is at $0.28/lb FOB Farm, with an Act of God on the first 10bu/acre. With the acres projected to be up from last year, this is a fairly good place to start your marketing. Even signing up some acres and leaving the rest uncontracted is an option to explore to mitigate some of that downside risk. Once again, we do have to mention we have a good source of seed still available, so talk with your merchant on variety and pricing.
Last weeks StatsCan stock report reiterated what was widely perceived in the oat community: that stocks are comfortable and there is no major pressure on them as of now. Numbers show that stock is down only 0.2% from the previous year with more product having vacated Sask. and Alberta than Manitoba. So, making sales on some product at these strong prices makes sense before buyers have fulfilled most of their need for the Spring onward timeframe. Pricing in that high $3’s to over $4/bu, depending on farm location just makes sense. Not much change from last week on the feed side as pricing remains in that $3 – $3.50/bu range. Looking for some new crop pricing? Give your Rayglen merchant a call to discuss options.
May and July canola futures saw a big rise over the past week and that strength showed up in local bids for Summertime movement. At time of writing, May futures are at $709.80/MT compared to $682/MT at the same time last week. July futures are sitting at $678.60/MT compared to $654/MT last week. Much of the strength we’re seeing in canola over the past week comes from bullish soybean and soyoil pricing. Adding to the strength is the expected tight ending stocks of Canadian canola, with buyers looking to lock up what they need for June and July. November futures have also seen a steady rise to $574.80/MT which can only bode well for local new crop bids.
Lentils had another good week of trading, but as we write we have reports of bids softening in certain markets. Last week, large greens traded as high as $0.39/lb FOB farm, but this morning the majority of buyers have pulled back slightly, and it seems that $0.38/lb is the realistic value today. Small green lentils are holding their value, trading at $0.33/lb FOB farm or $0.34/lb delivered plant. This market remains unchanged with rumors of bids potentially hitting $0.35/lb in some areas. We suggest growers throw up a firm target if this value would trigger a sale. Red lentils seem to be teetering on that $0.30/lb delivered range. We still have some opportunities to make sales at $0.30 delivered, but one buyer has already pulled out and told us this week that reds may be hitting the top of the market as India is starting to lose interest at these price levels. In the last year India has had 3 prices spikes over $750/MT (USD) landed at port; the highest being just shy of $800/MT (USD). All of those spikes have been short lived, with prices falling back to around the $725/MT (USD) shortly after. Today we near that mark, but with the harvest in India right around the corner, we are unsure how long these prices will last before trending down again.
Simply put, supply and demand continue to keep mustard very strong. Again, brown mustard shows strength this week with another bump in price. Spot bids are still showing $0.41-$0.42/lb on yellow mustard, $0.37-$0.39/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 up at $0.38/lb now, 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. Seed has been going strong so far; we have great prices on all colors and varieties of mustard delivered to your yard, treated or un-treated.
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.