The Oat market has been very stagnant for a while now, prices are range bound between $2.30 to $2.50/bu FOB the farm for Jan/Feb delivery. This is based on a good #2 CW milling quality oat. Feed oat values remain very quiet as well, sitting right around $2.10 to $2.20/bu picked up at the farm, pending specs. Prices are dependent on location as well. The best price for oats is usually in the southern half of Saskatchewan towards Manitoba. That being said, show your Rayglen merchant what you have as small, but attractive opportunities do pop up in other areas. If you are looking for a bit more out of your crop, you can also put up a firm offer to try and push the market.
Over the holidays and the past few weeks, the pea market has remained quiet with little to no price change. Green peas are seeing values at $8.00/bu delivered plant with the odd $8 FOB bid popping up. There is an opportunity for competitive yellow pea pricing for those in East Central/South East Saskatchewan. We also have pricing available on feed peas if you are needing some moved. Considering the near future, there is an expected drop in production for 2018, but a large carryover in 2017. Decreased production will help with the heavy supply, but we are still expecting a comfortable amount of supply for 2018/2019. Therefore, if we are to see an increase in pricing, it will likely stay modest.
Flax bids in Canada have remained fairly quiet as there has been some steady selling. Prices this week vary. $12.50/bu delivered on either a milling or #1 quality is available. The demand for yellow flax is quiet, which is reflected in the price. For those with lower quality left in the bins, we still have some good opportunities to get it moving. Chinese demand is showing some strength, but we are also hearing that the Black Sea region is supplying some of that demand. The 2017 Kazakhstan flax crop was a record and the exports are surpassing 2016. European crushers will likely need to rely on imported flax, which again will mostly come from the Black Sea region since the supplies are heavy. Elevator bids in the US have come up slightly and could provide some support for Canadian prices later in 2017/18.
This week there is a bit of life to the feed barley market as buyers show $4.00/bu FOB farm bids for certain areas. Coming back from the holidays, feed lots are looking to replenish their stock after slowed deliveries over the past week or two. With that being said, the past week also brought in very cold temperatures, which in turn prompted feedlots to increase rations. Corn is still making its way into the feed market, so taking advantage of this price might be a good idea. Movement is also fairly quick, with an indicated January- March delivery period. In some cases, this has been shortened up. With malt prices hard to find, and movement pushed out, there might be a lot more malt barley moving into the feed market to generate some cash flow.
Feed wheat values remain firm after the Christmas break still trading at $5.00/bu picked up on farm for Jan/Feb movement. Values will depend on location with some areas coming in slightly less due to added freight. Milling wheat has been tough to move as of late, but small programs have popped up in certain areas that growers should take advantage of. We have seen some bids of winter wheat at $5.50/bu picked up on farm in the south-east areas of the province for min 12.0 protein. Growers should keep in mind these programs are usually small and fill quickly so get in contact with your merchant to make them aware of what you have. Durum has not seen a lot of change, with indications up to $7.90/bu FOB farm for #1 US grade product. Movement is starting to get pushed further out on durum and wheat, with buyers steadily purchasing what they need.
Indications on the canary seed market remain unchanged and are currently showing next to no signs of life anytime soon. Bids have carried over week to week at $0.195-$0.20/lb picked up in the yard for quick movement in the next two months. With very little grower interest in these values, expect trading to remain quiet over the next while. Conversely, buyers still feel comfortable with current on farm supplies, while winter is usually a slower export season for canary seed.
Chickpea markets have slowed down a bit as we enter the new year. Expectations of a sharp acre increase around the world has caused buyers to lower their prices a bit. Early reports out of Mexico show 45,000ha of Kabulis have been planted vs. the 4-year average of 28,000ha. Old crop values are still historically strong with bids around $0.55/lb in the yard, so if you have any left on farm, be sure to give your merchant a call. New crop pricing has been tough to find this week as buyers re-evaluate markets, but bids have still been quoted in the $0.39/lb FOB range. These are both strong opportunities in times of uncertainty to put up offers to try and top the market.
The local soybean market has been a little quieter as of late as the Christmas season tends to slow things down. Current bids remain at $10.40 range per bushel picked up on the west side of Sask. Depending on freight numbers, obviously the bids will vary so touch base with the office for a number more tailored to your farm. The soybean futures trended a little higher today based on continued dryness in Argentina. The South American production capabilities will continue to be a market mover for soybean numbers going forward and a weak dollar continues to prop up our prices locally. The faba bean market is still buying some of the zero-tannin product for feed locally, but it sounds like several facilities are starting to phase fabas out of their rations again due to unpredictable supplies looking forward, recent bids have been at $5.75/bu range depending on location.
Lentils are hanging on after news out of India imposing at 30% tariff on lentils and chickpeas. Prices were not effected a lot considering the news, as reds are still hanging on at 18¢/lb delivered to plant with the occasional offer trading at 18¢ picked up. Buyers seem to be only purchasing hand to mouth right now, which would indicate that no one wants to get caught long product as this market still seems to be a little uncertain. Large green lentils seem to have found a home with number #1’s trading in the high twenties and low thirties. We have not seen any interested in new crop large greens at this time, sellers have tried target offers, but buyers are showing no interest. Whether it is due to the price being to high, or just no interest from the trade yet, we are unsure. Next week’s Crop Production show will be taking place and for anyone hoping for ground breaking news don’t hold your breath, as there is nothing on the horizon that will change the landscape.
Canola futures experienced small rallies today following advances in soy. Soy beans and oil clawed back, which pushed Mar, May and Jul canola futures $3.70-4.10/MT higher. Another supportive factor included a weaker Canadian dollar, making canola more attractive to importers. March closed at $494.60/MT with May and July both settling over the $500/MT mark. Basis levels remain relatively unchanged over the past few weeks at roughly $10/MT under delivered to plant. Deducting roughly $15/MT for freight puts FOB farm bids in the $10.65/bu range. For a more accurate value on your farm, please call your merchant. Buyers are also floating some new crop basis levels out, somewhere in the range of $25/MT under. A suspected increase in canola acres next year might make hedging some of your production a good play. If these values aren’t quite what you’re looking for, feel free to try our target system.
Not much changed through Christmas and New Years on mustard pricing. Mustard continues to be a strong new crop option, and pencils in very well considering returns this year and acres are being booked. Spot prices remain fairly strong, with brown trading at 44-45 cents/lb, yellow at 42-43 cents/lb, and oriental at 32-34 cents/lb. All the spot prices are picked up in your yard and can be moved fairly quickly in certain cases. New crop bids remain at 33-35 cents/lb on oriental, 35-36 cents/lb on brown, and 38-40 cents/lb on yellow. All new crop contracts are picked up in your yard and include a full Act of God clause. If you are looking for any seed, we have certified yellow and oriental, with some common brown available at very good values with convenient delivery to your yard. This seed can also be treated with a dual treatment. Call your merchant for more details.
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.