Barley markets have seen a slight dip in value this week with bids now indicated at $7.75 – $8.75/bu FOB farm depending on area and freight costs. These values continue to be quoted for March-May shipment with little to no demand seen for quick movement. Historically speaking, these are still amazing prices to offload feed barley. Not much for news in the way of malt, but if you are sitting with some on farm, your best bet is to call in with specs and let us see what values are attainable; indications have been quoted around $10.00-$10.75/bu FOB farm. New crop malt figures still seem to be somewhat up in the air, but depending on delivery timeframe, area, and variety, we have had bids pencil in around $8.00 – 8.50/bu FOB farm with an act of God. Please call your favorite merchant to discuss the contractual obligations required to obtain the AOG. New crop feed values are still indicated around $6.00/bu FOB farm and for those looking for a bit more, a firm target is likely going to get some attention.
As we know, markets started to pull back last week with the downward trend continuing into this week. The decline in bids was predominantly seen in green and maple peas, but yellows didn’t go unaffected. For those still holding yellow peas, we do have one option left at $18/bu FOB in South Central/Southeast Sask. for a deferred shipment window. Outside of those areas, values have dipped to $17/bu FOB in the glyphosate free market and $16.50/bu FOB range if they’ve been sprayed. Green pea bids have backed off to $15/bu FOB, with limited buyer interest, while maple peas are now priced at $17 – 17.50/bu FOB. New crop bids remain steady, and we are still able to trade $13 – $13.50/bu FOB in Southeast Sask. for yellow peas. We continue to recommend firm targets at $13/bu in other areas. New crop green peas have seen some life this week with the first new crop trade hitting the books at $12/bu FOB farm with an AOG; a good price to start thinking about locking in a few bushels.
Prices on flax this week are signaling downwards and without much demand, bids are sitting around $38.00/bu picked up in most locations. Canada exported 80,000 tonnes of flax during the first four months of 2021/22, this is compared to a 5-year average of 126,000 tonnes. Reports out of Russia are showing a jump in flax acres, so, while the yield was below average, there was a 40% increase in supply from 2020. This explains why prices out of the Black Sea region haven’t risen as high as Canadian prices and why Russian flax has dominated Chinese imports. Import demand from the US kept Canadian flax prices at an all-time high, but there is still a limit on what the crushers to the south of us need and that demand has backed off.
Well, the old adage of “high prices cure high prices” appears true once again. For months now buyers have been hinting that these prices were higher than the market could sustain and now that growers are willing to make sales, the market can’t handle the pressure. All grain markets have slipped back a little in the last 4-5 days and lentils are no exception. There are a few factors that are affecting the market; there is more product coming to the table than there are back-end sales, shipping is below average and cheaper product is available from around the world. With the combination of reduced shipping and high prices, expect to see an increase in ending stocks as we near summer. The increase in ending stocks will likely not be a huge adjustment, but just enough to keep markets from rallying. Prices do however remain at the upper end of historical highs for both old and new crop. Buyers seem to have limited tonnage for both old and new crop making pricing very volatile. Think execution over hesitation when markets are changing this fast.
We’ve got a pulse folks. A breath of life has put some wind back into the sails of the milling wheat market, thank goodness. On a #1 CWRS 13.5 protein look for $11.80 – $11.95/bu range delivered in Central Sask. for Feb./Mar. timeframe. Now you can exhale as the wind is still a tad lackluster when it comes to the feed side. Buyers seem to be around that $10-$11/bu picked up on the farm depending on location. Movement is pushed out as a wealth of corn has been infiltrating the feeders for some time now. Switching gears to durum, new crop trading is going strong around $13-13.50/bu range in Southeast Sask. Old crop has softened to $19.50-20/bu delivered in. Buyers are always on the search for product so if you have a different price range and movement in mind give your Rayglen merchant a call.
The oats market has been quieter in recent weeks as buyers have covered a good portion of their needs this crop year. Spot bids are showing prices around $9/bu on farm (depending on freight area) for a #2 quality product still in the bin. Movement for many buyers has been pushed out into summer months at this time. Feed oats prices are just north of $8/bu in many areas depending on what the downgrade factors are. If you are planning to seed oats this year, there’s some very attractive levels on new crop out there at $6/bu or a bit better for fall movement with prices carrying a bit more clout into Winter/Spring of 2023 for those with storage.
After a week of consistent decreases, canola futures are showing signs of recovery today. While prices have not returned to their yearly highs, a significant bounce back today is an encouraging sign for those with canola still in the bin. Strength in crude oil and support for vegetable oil markets around the world are helping raise prices today. March futures currently sit at $995/MT, down from this time last week when they were $1010/MT. Looking out to new crop, bids have strengthened and now sit at $800/MT on the November futures. This has increased since last week when they were at $790/MT. Depending on local basis level, some bids may be available for over $18/bushel for fall delivery. This is very strong and worth looking at.
Pricing has taken a hit on most specialty crops this week and canary seed is no different. With low demand being a common theme at historically high prices, bids for canary seed have slipped down to 48 cents/lb FOB farm for a Feb.-April movement period. Bids at this value do not appear to be very deep and if a few sales are made, we could see further price drops. Typically, the next major export season for canary will be around April/May. With that being said, this year has been anything but typical and we will have to keep a close eye on demand levels and how many buyers are aggressively looking to purchase. New crop values are still historically strong between 35-36 cents/lb FOB Farm for Sept.-Dec. movement with a full AOG on the first 10 bu/acre.
Soybeans have found some recent upward momentum due to questionable South American production forecasts and decent domestic crush demand. Local bids are location dependent and range from $14.50 -$15.50/bu FOB farm. Dry edible beans saw a decrease in local bids over the holiday season. Recent USDA reports indicate a year over decline in production, but somewhat moderated by carryover inventories. Mexico dry bean production is anticipated to be down year after year, with some reports as high as a 30% decrease. A return to “normal” demand is required for these production decreases to create any upward price movement. Faba beans continue to ride the wave of strong domestic pulse prices. Feed faba bids are in that $13/bu FOB farm and when #2 demand periodically occurs it is often near $15/bu FOB farm.
Mustard markets remained very strong this week and seem to have stabilized for now. We are seeing a bigger uptake in new crop contracting as of late from the grower side, which is not surprising. New crop contracts remain very strong for brown and oriental in that 70-75 cent/lb range with yellow up at 77 cents or even higher on offer in some cases. New crop mustard contracts of course include an act of God & are picked up on farm. Spot prices remain very strong also, with yellow and brown around $1.50 and all varieties of oriental quoted at $1.00/lb or better. Something of interest to note; we have seen one mustard buyer go “on hold” for spot purchases while they reevaluate their position. Does this hint at mustard markets quieting? Those with product in the bin may want to consider taking advantage of these values while they’re still available. We have seed remaining, so if you need seed, we can supply all types of certified, treated, or untreated and delivered to your yard.
Chickpea markets continue to struggle this week. Most buyers are reporting that slow foreign demand and shipping issues continue to plague the market. Bids continue to hover around $0.46/lb FOB farm for March to June movement, with the odd bid popping up on a case-by-case basis at 47 cents, but these opportunities remain few and far between. Moving chickpeas in February looks near impossible right now and, in many cases, it is difficult to even get a bid from buyers. Rumors of a chickpea tender are out there and maybe that helps to provide some support. This is yet to be seen, and we will update you on any developments on that front. New crop has a bit of talk in the $0.30-$0.35/lb range, but very remains quiet. Seed will likely be in demand as we are hearing reports of some terrible germination numbers in last year’s crop, so it is wise to send your sample off for germ tests to avoid surprises. Call us if you need a quote on some seed delivered to you.
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.