Yellow pea prices experienced a slight increase this week, with old crop once again reaching $13/bu picked up in certain regions. New crop values hover around $9 to $10 per bushel picked up with an act of God in slow trade. Green peas maintain their position at $17.50 to $18 per bushel FOB, contingent on location for #2 quality with max 3% bleach. Additionally, demand remains for higher bleached product, so call your merchant with specs for accurate on farm values. New crop green peas have garnered interest at $13.50 per bushel including an act of God. Maple peas retain their strength in pricing, with old crop still quoted at $25 to $26/bu picked, with new crop bids sitting at $18 per bushel delivered, pending variety. Seed supplies are decreasing, but if you’re looking to update inventories, please contact our office.
Canaryseed markets remain stable, with consistent bids for both new crop and old. Spot values range from $0.40 to $0.41 per pound FOB farm, accompanied by a reasonable delivery window. New crop values remain at $0.35 per pound FOB farm, including an act of God clause, with most buyers willing to purchase up to 15 bushels per acre. These prices offer an opportunity for cash flow at harvest time, with prompt delivery. Anticipation for any immediate increase in values is low, as buyers are content with their current commitments and its still believed that any significant tonnage purchases may push values lower. Discussions across the prairies suggest that overall acres may be slightly higher than anticipated, though total production is not expected to set records this year.
Oat acres are projected to increase by 27% compared to last year. While this seems substantial, considering last year’s lower planting figures and tighter stock positions, the increase appears less daunting. Consequently, prices, although historically decent, are not overly aggressive. New crop figures range from the high $4’s to possibly $5 per bushel in most areas, but buyers are not aggressively seeking product so are not aplenty. Sellers are also not pushing aggressively, resulting in lackluster market sentiment. Some old crop sales are taking place with feed prices of $4 to $4.25 per bushel, depending on weight spec and region, while milling oats may fetch around $5 per bushel in certain areas, slightly lower in others.
Lentils remain a bright spot in the grain marketing arena, with both old and new crop prices showing strength. Green lentils of all sizes remain highly sought after, while reds have seen a slight decline this week and specialty lentils maintain stability. Old crop large green lentils are trading between 75 and 76 cents FOB farm for Feb-March movement for #2 or better quality, whereas new crop prices reached as high as 57 cents FOB farm this week for Sept-Dec movement with an Act of God clause. Medium greens have traded at 52 cents USD or 72 cents CAD FOB farm for Feb-March and indications at 36-38 cents USD or 52-54 cents CAD FOB farm for new crop have been seen with Sept-Dec movement. Small greens are priced at 75 cents for old crop Feb-March movement and between 50-52 cents FOB farm for new crop with an Act of God. Beluga lentils traded at 75 cents FOB farm for Feb-Mar movement, with buyers seeking offers on new crop. French greens have seen limited pricing activity, with the last trade at 60 cents FOB farm for old crop and 52 cents with an Act of God clause for new crop. Farmers are capitalizing on these record prices for new crop lentils, with small green lentils showing the best return on investment at nearly 50%, followed by large green lentils at just over 40%, and reds rounding out the top three with a return of just over 25%. These prices serve as promising starting points for the 2024/25 marketing year.
Flax exports remain subdued as we await this week’s StatsCan report to provide further insight into the market. However, no significant surprises are anticipated as the carry-over from 2022 offsets the smaller tonnage from 2023, ensuring ample supplies to meet demand and thereby keeping prices stable. Nonetheless, occasional market opportunities arise, and this week presents one such instance. Both old and new crop flax are fetching $15.50 per bushel picked up in the yard today, with pricing sensitive to freight costs. Production contracts are of particular interest due to the inclusion of an act of God clause and fall/winter shipping. Until the stockpiles in Chinese warehouses deplete, the primary destination for exported flax remains the US. European prices have experienced a slight uptick, possibly attributed to diminished quality of flax from Kazakhstan.
Not a lot of change for those watching wheat markets this week. China’s recent decision to open imports from Argentina has prompted Brazil to seek alternative export options. Canadian wheat exports maintain a healthy pace, standing 6% ahead of last year at 10.5 million MT. Delivered wheat bids to Saskatchewan plants include $9.10 per bushel for CWRS 13.5% pro and $8.50 to $8.65 per bushel for CPS. Feed wheat values have slightly decreased, trading in the range of $7.00-$8.00 FOB farm, contingent on type and quality. Durum prices remain steady, with spot bids at $12.00 per bushel delivered to Saskatchewan plants for spring delivery, while new crop values hover between $10.00 and $10.75 per bushel delivered. Turkey’s tender to sell has seemingly favored Italy and Tunisia, indicating reduced Canadian export potential in the latter part of winter. According to CGC data, Canada has transitioned from the top durum exporter to the third position in the past year among the EU’s top durum importers. Canada’s share of durum exports to the EU decreased from 70.6% in 22/23 to 18.9% in 23/24, trailing behind Turkey at 37% and Russia at 24.1%.
Chickpea markets have remained stagnant for yet another week, despite Statistics Canada’s estimation of low Canadian supply, which many perceive as inaccurate. It is speculated that challenges associated with smaller sizing and the difficulty in marketing this type of product overseas has growers hesitant to sell due to the bids accompanying this product. Old crop #2 Large Kabuli bids show a wide range, largely tied to sizing and freight costs with values quoted from $0.52-$0.57 per pound FOB farm. These bids typically come with specifications such as a maximum 10% allowance for 7mm sized chickpeas and some buyers are requesting a minimum 9mm size. New crop bids range from $0.43 to $0.45 per pound FOB farm with an Act of God clause and movement scheduled between September and December. However, buyers are not aggressively pursuing every available acre, opting for a slow and cautious approach in the current market. While some buyers have withdrawn from the feed markets, interest remains just a phone call away. Growers are encouraged to inquire if they have any off-grade chickpeas in storage.
Soybean futures continue to face downward pressure as the Brazilian harvest progresses and Argentina receives precipitation. Bids range from $14.75 to $15.25 per bushel depending on the farm’s location. Dry bean exports to Mexico have strengthened the market, with pinto and black beans fetching attractive bids, albeit black beans leading the way in responsiveness while pintos show a slower uptake. There is anticipation of an increase in new crop Canadian faba acres, with bids for #2 quality tannin varieties hovering around $10 per bushel FOB farm. Old crop #2 faba bids range from $11.50 to $12.00 per bushel FOB farm, while feed quality values are approximately $10.00 to $11.00 per bushel FOB farm, contingent on the location.
The downward trend in the canola market persists this week, with March futures dropping to $585 per metric ton, down from $606 per metric ton last week. This decline is somewhat anticipated, given the significant short position on canola held by funds, coupled with the relatively favorable conditions of South American crops. Exports of raw canola seed are progressing slowly, with domestic crush serving as the primary demand point. Looking ahead to the next year, November futures have slipped from $619 per metric ton to $597 per metric ton over the past week. With attractive prices on other commodities, it is likely that acreage dedicated to canola will decrease in Western Canada for the upcoming crop year due to the high planting costs associated with the crop.
Barley markets have been quiet lately, with buyer bids hovering around $4.75 to $5.00 per bushel picked up on the farm, the latter for deferred movement. These values have seen minimal fluctuations and sellers are hesitant to contract at current prices, hoping for improvements in the market. Buyer bids are decreasing due to the ample supply of corn and warm weather conditions, which haven’t prompted feedlots to urgently seek additional feed. There appears to be a significant amount of barley still on the farm, with hopes that prices will increase before the new crop is harvested, though all signs continue to point to a bearish market at this point. Looking at new crop prices, indications have emerged around $6.10 to $6.25 per bushel delivered into feedlot alley. The malt market still shows very little interest in either old or new crop barley, so we continue to suggest targets.
Mustard markets continue to face challenges this week, with brown mustard struggling the most. Price indications for both old and new crop brown seem to have dipped just below the 40-cent, making contracts above 40 cents difficult to secure. Yellow mustard remains relatively stronger, but spot prices have dipped into the 60-cent range, while new crop prices have slipped making 60 cents tough to contract. Oriental spot bids are likely in the very low 40-cent range for both old and new crop, though higher offers for new crop oriental mustard have proven somewhat effective, with some buyers having booked at higher levels this week. Given market volatility, it’s advisable to seek updated information, as spot bids and new crop bids can vary widely among different buyers on a day-to-day basis. The standard Act of God clause for 10 bushels per acre applies to new crop contracts, but even bookings as low as 5 bushels per acre are being considered. Mustard seed, with treatment options and free delivery to the farm in totes or bags, is readily available, and details can be obtained from your merchant. Mustard seed proves to be a more cost-effective option compared to canola seed.
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.