Although spot purchase opportunities for malt barley contracts aren’t abundant, we do have a few buyers out there taking samples and purchasing on a case by case basis. New crop malt bids are much the same, but we have seen some two row varieties trading at $5.00/bu FOB farm in Southern AB and $5.00/bu loaded rail in Sask. Contracts are variety specific and include an act of god as well. Feed barley markets and subsequently prices remain relatively unchanged this week with bids ranging between $3.60 to $4.30/bu depending on area. Most of the product we’ve been trading is destined for feed lot alley, so freight is the biggest player in capturing those $4 plus bids.
The oat market has been very stagnant over the past few months with really no change. Feed oat prices range between $2.50 to $2.80/bu FOB the farm, in light trade. Good quality milling markets remain firm with bids in the $3.00 to $3.50/bu FOB ballpark. The closer you are to the Southern Manitoba border, the better the value will be. Over the last couple weeks, we have started to see some new crop bids pop up with decent opportunities for those in good freight locations. Please call your Rayglen merchant for the most up to date prices in your area on old or new crop.
The pea market has been holding steady over the past month; in value and overall demand it seems. Aside from maple peas, we have seen little price change in the market with yellow peas still trading at $7/bu delivered and green peas at $11.50/bu FOB. As mentioned, maple peas have seen a little slip to $8.50/bu FOB this week. As per Stat reports, China has been our main importer of yellow peas with Bangladesh looking like the next biggest player. India now seems to have little changing effect on our market, as we saw little reaction to their latest import restrictions. We expect yellow and green pea pricing to remain firm and maybe see a slight increase later in the year as supplies lower. For maple peas, upward price movement is less expected as the market is heavily supplied. Finding a home is getting more difficult and we have seen values fall as a result. New crop prices have been slow to come out on peas and pulses in general, but if you have a target price in mind, let your merchant know.
Flax prices remain sideways with export activity having slowed down over the last month. Milling flax is still $14.00/bu picked up in the yard range with further out movement while #1 flax remains at $13.00/bu. There is some interest in new crop, with an act of God at $12.50/bu picked up. Yellow flax markets are quiet lately. With those who have some lower quality flax, samples to our office are needed. Lack of local export have kept the price of flax at bay, while out of the Black Sea regions are historically large. According to analysts, one of the main factors of Russian flax moving to China compared to Canadian flax has been price. Canadian supplies are tight enough that we shouldn’t see prices back off, however there likely won’t be much of an upside either.
Lentils markets have cooled off this week with most varieties seeming softer. Selling pressure and market demand have collided, while news coming out of India is that the Rabi crop is in good condition and is projected to better than originally expected. This, in turn, has resulted in these new pricing numbers and caused a small drop in value. The market for #1 or X2 large green lentils has softened and in some cases tough to find bids on. Demand for higher quality lentils has little interest from buyers at the moment. Number #2 large green lentils still have buyers though, and bids range between 23 cents and 24 cents FOB farm. Small greens seem to be holding up better than their larger counterpart, still trading at 21 cents FOB farm in some cases. Red lentils have pulled back slightly and are trading between 22 cents and 23 cents on farm. Price may remain softer until we see what the India harvest actually produces.
Canola prices continue mostly sideways over the last week. The USA-China trade agreement part 1 didn’t spur a wave of soybean trade, which in turn, did not help pull up canola bids. March futures currently sit at $479.1/mt, which is where they have been hovering a little above and a little below for the past month. Pricing opportunities into summer months seem to be the best options right now, with bids between $10.25 to $10.50/bu attainable at the farm for June/July. For those with product high on moisture/green count or even foreign material we urge you to keep a close eye on those bins as the weather fluctuates and we approach summer. The risk of heating is high this year. If you have the unfortunate issue of heating, we still have some opportunities with a few buyers for prompt movement, so touch base with us with your product specs.
Chickpea reports are coming in from the globe, but this has had little to no effect on the tone in Canada. USDA reported production down 51% from last year, but with the large carry over from 2018, the 2019 production was only down by 9% compared to a year ago. Russia exports started out slow but November saw record numbers with major buyers being Pakistan, India and Turkey. There is speculation of fewer acres seeded in Mexico at this time compared to previous years, which could translate to a smaller crop for them in 2020. India is reporting 13% higher planted acres, based on a 5-year average for desi’s and kabuli’s combined, as well as they have seen above average rainfall. All in all, it is widely agreed upon that any price improvements expected for chickpeas will be slow and could take up to 12 months for any kind of “swings”. Current crop #2 Kabuli’s bid ranges from $0.25-$0.26/lb FOB farm and new crop indications around $0.24/lb FOB farm with an AOG.
Feed wheat bids have remained stable with trades continuing in the $4.50-$5/bu range FOB farm depending on location. Most of the feed continues to move into Alberta, so pricing is stronger the further west you are. #1 CWRS with 13.5% protein has seen a bump into later months. Price strength comes from potential increase in Chinese buying, limited Argentine stock and low participation from Australia due to drought. $6.40-$6.60/bu delivered plant in central Saskatchewan between June-August movement has seen trading.
The biggest question to an age-old dispute… how do you spell canary seed; with or without the space between the two words? The verdict has come down, there is a space – feel free to call us for an explanation. Now that that’s been settled, we can get on with pricing. We continue to see the market lay in wait, with softer current pricing as buyers continue to clean up purchased spot contracts. However, there does seem to be a hum of anticipation out right now in regard to the upcoming round of buying. This is due to the tight supplies currently facing this commodity feeding into the speculation of a price pick up. Right now, though, current bids are hovering around that 28 – 29 cents/lb FOB farm with the odd locale still at 30 cents/lb delivered to plant for Jan – Mar movement. Looking ahead, a hot topic at the Crop Production Show was new crop pricing for this commodity. Though we have yet to see anything formal come down the pipeline, we are taking offers from producers. So, give your Rayglen merchant a call if you have a target in mind.
A few days after Saskatoon’s Crop Product Show has wrapped up, mustard remains stable. After attending the mustard meetings, the consensus puts acres around 450,000 for the 2020 growing season. This of course is a ballpark number right now as many growers remain undecided on planting intentions for 2020. New crop bids remain strong, especially true for yellow mustard, and Forge or Vulcan oriental mustard. Call your merchant for prices on these. This week spot yellow is trading at 40 to 41 cents/lb FOB, brown is trading at 28 cents/lb and oriental sits at 23 cents/lb for Cutlass and a bit higher for Forge and Vulcan, likely in the 25-cent range. Seed has been booking for all varieties so, please call your merchant for prices for certified and treated options delivered to your yard. There is nothing more important than starting your new crop off right using certified seed, especially with mustard.
Soybeans have been under pressure in the absence of soybean purchase specifics within “phase one” of the US/Chinese trade deal. Additional pressure is brought to bear as the decimating impact is revealed of the African Swine Flu. Latest reports state that 55% of the Chinese national swine herd has been wiped out. Furthermore, recent reports state that 5% of the Chinese slaughter facilities continue to test positive for the African Swine Fever. Chinese soybean purchases are largely destined to be crushed into meal to feed the national swine herd. Local soybean bids are trading in the range of $9.75-$10.00/bu picked up on farm. Dry bean market will remain supportive well into the new crop contracting period, predicated on disappointing production levels this fall. Faba market starting to show a little life with #2 export quality bids ranging from $9.00-$9.50/bu picked up on farm. Feed faba bids trading a little plus or minus either side of $6.00/bu picked up on farm.
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.