The canaryseed market remains strong, but there is little to no change from last week. Spot values are trading around $0.31/lb FOB farm, or $0.32/lb delivered to plant. You may find $0.32/lb FOB farm for Spring movement but remember road bans will most likely come into effect the last half of March which may affect the bid. New crop bids are thin, but growers are still able to catch $0.26/lb FOB farm with an act of God. Getting 10bu/acre locked in at that price may not be a bad place to start if considering the 5-year pricing average. If you are looking to get into canary or switch out your seed for a new variety, talk with your merchant as we do have seed supplies available. Also keep in mind that if you have a certain price you are looking for, offers are a great way to showcase your grain to all buyers.
Feed and milling wheat markets have been quite strong over the past couple weeks and continue their trend as we write. Feed wheat, with delivery pushed out into Summer months, has been trading over $7.00/bu FOB farm in many areas and up to $7.60/bu FOB farm in Alberta. Producer bids for milling CWRS range from $7.75 to $8.05/bu delivered for a #1, 13.5%, with a few reports of strong premiums on higher protein product. Growers with 12.5% protein can capture bids slightly less, around $7.55 to $7.85/bu delivered, with movement pushed further out. Bits and pieces of #1 US spec new crop durum continue to trade around $8.25/bu FOB farm in South Central & Southeast Saskatchewan. These are very good values on wheat, and we suggest growers make some hedges as we are unsure how long this will last.
The yellow pea market continues to hold its premium to greens as world supplies continue to shrink. We can expect this market to hold strong so long as China maintains their importing pace destined for their feed channels. Yellow peas are trading at $9.75 – $10.00/bu delivered, with the latter seen in the Saskatoon area. We have also had new crop values trade at $8.00/bu FOB with an act of God and although not a widely seen bid, we urge growers to get their targets in. Green peas remain quiet at $9.00/bu FOB, with very little overseas demand. Maple peas have had a few trades pop up here and there at $10.00/bu FOB farm, again with targets being the best option. India’s pea crop is looking favorable right now and they were able to add a few more acres to their total, about 1% higher than the 5-year average, as per reports. Therefore, we can expect India to remain fairly non-existent as an importer in this pea market.
Recent rains in South America have buoyed the prospects of favorable yields and conversely have sewered US soybean futures. Local soybean bids now hover around $14.00/bu picked up depending on location. Faba bean export bids remain virtually non-existent due to a return in normal global trade. Production in Australia and parts of Europe are back on track and importers are falling back into previously established buying relationships. Feed faba bids are near $7.00/bu to $7.25/bu FOB farm, location dependent. Dry bean bids continue to slide from early harvest values due to abundant North American supply. We continue to hear reports of new crop seed shortage due to poor germination. New crop dry bean contracts are available at attractive price levels. Contact Rayglen to book your acres.
Feed barley continues to dominate the local barley marketing discussions. Feed bids are historically high in both spot and deferred shipping positions. Old crop feed ranges from $5.00/bu to $5.50/bu FOB farm location dependent. Deferred feed shipping bids into Summer are approaching $6.00/bu FOB farm. New crop feed bids of $5.00/bu to $5.25/bu picked up have been buying acres. Malt barley bids continue in their previously laggard fashion due to poor demand. Old crop malt bids tend to equal feed bids and new crop bids are not attractive enough relative to feed to get growers to commit.
The milling oat market continues to maintain its pricing strength as bids reach the upper echelon $3’s, butting up to $4/bu depending on movement timeframe and farm location. The great freight locations are typically in South Eastern Sask., as product heads East into Manitoba. New crop milling bids are also available, so give your Rayglen merchant a call to firm up pricing in your location. On the feed side, there is not a ton of love for product under 40lbs but if you are 40lbs plus, look for pricing anywhere in that $3 – $3.50/bu range with fairly quick movement. As a side note, we would like to mention that the CBOT is looking for participants in a market survey regarding the Oat Futures contract. To quote our colleague Greg Kostal, “Disconnect between oat futures and Western Canada cash price grid is obvious. Some like it that way, while others don’t. There is also talk of possibly adding a Winnipeg switching district delivery location. No matter if a user, farmers, shipper, processor, the opportunity to provide feedback on possible amendments is now. Response deadline is Jan. 22.”
One of the strongest markets throughout this winter remains to be the flax market. Current bids are hitting at $20.00/bu picked up, on #1 quality, for those who still have unsold product in the bin. China is still the main buyer in this market but there seems to be product going to the other 2 big players as well, Europe and the US. European purchases are the largest we have seen in Canada for several years as Chinese markets usually take more product from the Black Sea Region. If you still have flax in the bins these prices do seem to be stable for time being, but this market is generally an escalator on the way up and elevator on the way down, so being heavily sold today is a prudent move and is encouraged. If you’re seeding Brown flax, also consider taking some risk off the table at $15/bu picked up on farm with act of God for 2021 crop. Even if the acres don’t increase much in Canada, they are sure to increase in other parts of the world at these values, so hedging the downside is a good play. For Yellow flax, grower spot prices are similar to Brown at $20/bu range, while new crop is showing closer to $17/bu picked up on farm with act of God.
After months of a steady climb, we are seeing drastic declines in canola futures markets over the past two days. While fundamentals appear not to have changed as much, this market is very strong and therefore, very volatile. Weekend rains in South America appear to be the news that has sent futures downward, with Brazil receiving rainfall across major areas of the country. With that being said, we’re still looking at possible small crops from Brazil and even more so, Argentina. At time of writing, March futures are at $650.80/MT which is down from $687/MT at the same time last week. Technical corrections are a part of futures markets and we could see this market come right back up in the coming weeks.
Lentils continue to strengthen again this week, but as prices rise farmers seem to remain reluctant to sell. Large greens seem to be the quietest out of all the lentils on the trade side of things. Bids this week are between $0.35-$0.36/lb delivered depending on location throughout the province. New crop large green lentils range between $0.28-$0.30/lb FOB farm, again location specific. Spot red lentils are trading between $0.28-$0.29 delivered for Feb.-March movement and as of this morning, new crop contracts are being done at $0.25/lb Fob farm with act of God. Small green lentils are still sitting at $0.28-$0.29 FOB farm with new crop indicated at $0.25-$0.26/lb. At these levels, new crop lentil bids pencil out with some decent returns. For example, red lentils come out roughly at a 21% return on investment, while large greens pencil a 19% return on investment.
Chickpea markets are getting a bit of buzz with old crop bids at $0.27/lb FOB farm for Feb.- Mar. movement. This has not generated a lot of business, but it has certainly kept the conversations coming. New crop has not formulated a bid yet but when talking to growers, the ideas hover around $0.30-0.35/lb. Clearly there is a divide on the buy and sell side of the market. If growers do not see values come up, it is likely they will grow acres open and gamble on price improvement. We have also heard growers switching out from Orion seed to Leaders due to disease issues last year. If you are looking for seed, feel free to call us for a market comparison.
Mustard has been fairly busy this week as the price shows strength in most areas. Brown mustard is stealing the show with spot bids sitting at $0.36/lb FOB for prompt movement with potential for higher on firm offer. Yellow has picked up slightly, with spot bids sitting at $0.41/lb FOB farm for fairly quick movement also. Forge Oriental is up at $0.32 for March/April and Cutlass Oriental has seen some trading done at $.30/lb FOB for that same window. New crop brown mustard is steady at $0.36/lb, with contracts being offered for September through July of 2022. Again, show us offers if your sell point differs slightly. New crop yellow is sitting at $0.42/lb and Forge or Vulcan Oriental as high as $0.30/lb for the same time period. Cutlass is now at $0.30 cents for new crop also after a recent jump. Please call us to discuss all your new crop and seed options. We have all varieties of seed, either treated with 2 treatments, or un-treated and our prices include delivery to your yard.
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.