The pea market has seen a bit of a decline in pricing; specifically, green and maple peas. Right now, the Chinese New Year is going on and we typically see a bit of a slowdown in markets during this time. However, along with the Chinese New Year, the markets are also reacting to the new Coronavirus in China. Due to these circumstances we have seen green peas pull back to $10.50 – 11.00/bu FOB, maples peas to $8.50/bu FOB and yellow peas to $6.90/bu delivered. New crop values have also been slow to come to the market. Once the Chinese New Year comes to an end, we hope to see values firm back up. As per Stat reports, the Indian government may also be coming out with a separate green pea import quota (no longer a quota for yellows, greens and others combined), if this happens, we could see green pea prices firm back up.
Lack of flax export demand has kept the pricing at a standstill. For those with milling quality, we still have values in the $14.00-$14.25/bu FOB range with further out movement. New crop values are showing $12.50/bu picked up with an Act of God. Sellers with #1 quality can see prices range from $12.00-$13.00/bu. For those looking for new flax seed we have supplies available. Bids still remain at multi-year highs and Canadian supplies are tight enough that bids are not expected to slip back. At the same time, there is no indication that prices will jump up. Cheaper Russian and Kazakh flax continues to limit Canadian flax to China and possibly the EU.
Malt barley opportunities for old and new crop contracts have been few and far between. We do have some buyers that have been taking in samples of old crop and have been purchasing on a case by case basis, but it has not been very much or that often yet. There are possibly some loaded rail opportunities in Saskatchewan at that $5.00/bu range. The contracts that have been trading on new crop malt, has been variety specific and with an act of God clause. The feed barley market has been fairly stable and has been trading between $3.40 to $4.25 for dry and heavy feed barley. Most of the feed barley we have been trading has been going to feed lot alley in Alberta. Trying to get as close to $4.00 has been a challenge because of freight, so the further west the grain is, the better the price.
Once again, the market remains flat this week on canary seed as the seasonal pop in pricing isn’t expected to trickle out for a few more weeks. Regarding pricing, we are still seeing some 30 cents/lb delivered into a few plants so look to see that 28-29 cents/lb FOB farm trading for that Mar-Apr movement. We don’t have any official new crop pricing, but we continue to field questions on it. A couple production offers have triggered so, give your Rayglen merchant a call if you have a target in mind. Some food for thought, the reports out of Argentina are showing that their canary crop has decreased in size by just over 40% from the previous year. That coupled with the smallest recordings of export for them since 2012 and now projected lower exports expected for the 2019/20 crop translates to even fewer exports for 2020. With Argentina’s woes and our issues with harvest this past year acres will increase, it’s just where does the pricing land?
No change from last week to this on feed wheat pricing as the market seems to be fetching any where from $4.50 -$5.00/bu FOB farm depending on location. Much the same with #1 CWRS with 13.5% protein as prices are still ranging in the $6.40 – $6.50/bu delivered to plant in central Sask with pushed out movement into June/July. However, no change cannot be said for the futures board. If you take a gander at it, you will have noticed a strong pull back on US wheat futures. This is in large part thanks to speculation that China seems to be pulling wheat from literally everyone but the US. Watch for this to continue for the next little bit.
Lentil prices have sure softened since last week. They seem to be following the rest of the markets that are responding negatively to the news of China’s coronavirus situation. Some buyers have gone as far as showing no real interest in red or green lentils.The coronavirus may be just part of the problem as markets could also be trending down due to top heavy prices and where exporters see the grain as desirable again. Large green lentils trading at 25-26 cents for an X2, 21-22 cents for #2. Small greens 19-20 cents for a #1, 17-18 cents for a #2. Red lentils trading at 20-21 cents for a no.2 and 18 cents for #3. Just as the sunshine was starting to shine on lentils again another storm cloud appeared; hopefully like most storms this will pass by quickly.
Chickpea markets remain unchanged. New crop values are coming in around $0.24/lb FOB and delivered depending on the location and mixed sizing. Old crop is $0.25-$0.26/lb FOB depending on the movement you are looking for. It has continually been said that this market will remain in this holding pattern for the unforeseeable and the global scare of the coronavirus is not helping speed that process along. Offers slightly above market tend to catch a buyer’s interest otherwise, bins are closed for the time being.
Oats continue their sideways trend this week with very little news coming out to have any effect on prices. Bids for heavy and dry feed oats are in the $2.50-$2.80/bushel FOB farm range. We do have some small opportunities in eastern Saskatchewan and Manitoba for feed oats that can be used for a special purpose. These oats need to be low sprouted and could fetch as high as $3/bu FOB farm. On the milling side of the market, bids continue between $3-$3.50/bu FOB farm with the best bids being closer to southern Manitoba. New crop bids have been showing up so be sure to give us a call for bids in your area.
Soybean futures are sideways at time of writing after a mostly downward week in prices thus far. A lack of buying from China due to multiple factors; Swine flu, Coronavirus and Chinese New Year holidays keeps a cap on things along with reports for higher production from South America adds in as well. Despite all this the prices for old crop soybeans in the bin remain pretty decent with bids over $10/bu picked up attainable in many areas for movement in the springtime. Faba bean prices have been strong this past week or two with a few good quality #2 trading at north of $9/bu picked up in the yard. For growers looking to seed some and interested in new crop acres we have a couple buyers that have shown some interest to contract so touch base with your merchant.
Canola futures have taken a nosedive down to technical support levels, following the lead of most exchange traded commodities. Markets had been on a nice steady upward run and then the coronavirus news hit the air waves and in the absence of a “phase 2” US/China deal…well the writing was on the wall. Specifically, to canola, commercial stocks are heavy year over year due to steady farmer deliveries. Seed exports through licensed elevators is down (China), whereas year over year total disappearance is running 2.7% higher due to brisk crush plant business. Nearby canola bids will be under pressure due to heavy channel inventories, thus selling into deferred delivery positions will often bring higher returns. Same goes for new crop, any pop in the futures should draw one’s attention to pricing new crop values. April/May delivery bids are holding over that $10/bu del’d benchmark and new crop is largely flat to deferred old crop bids. Call your Rayglen merchant for competitive FOB farm canola bids.
Mustard remains flat this past week. Some new crop bookings on yellow mustard have trickled in and some spot trades also on all types has been trading. New crop bids remain strong, especially true for yellow mustard, and Forge or Vulcan oriental mustard. Prices are around 38 cents for yellow and 28 cents for brown. Prices up to 28 cents FOB have traded on oriental if seeding Forge of Vulcan. Call your merchant for up to date 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. Again, we like to stress, nothing is more important than starting your new crop off right using certified seed, especially with mustard. The risks are just too great.
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.