It has been a couple weeks since our last report, and since then, it has been all good news for canola growers across the Prairies. Canola futures continue to follow soybeans upwards and are pushing to levels we have only seen once in the past ten years. The US dollar losing some strength, as well as concerns surrounding dryness in large areas across South America are a big part of the bullish pricing we are seeing. March futures sit at $652/MT at time of writing, with May futures at $643/MT. These are increased from last week when we saw $636/MT for March and $625/MT for May. Not only are futures rising, but basis levels appear to be narrowing with reports of positive basis levels in some areas. Keep an eye out for the best basis levels in your area to maximize your price when looking to sell.
As we kick off a new year, pea markets and producer bids remain relatively unchanged. Yellow peas are strong at $9.25/bu delivered to several locations throughout the Prairies, with $9.00/bu FOB workable in a few areas too. Green peas are still soft at $9.00/bu FOB, while Maple peas see a slight increase to $10.00/bu FOB; tonnage seems to be limited at this value. New Crop bids are slowly starting to become available, but mainly just for yellow peas. We have seen programs pop up at $7.00 – 7.50/bu FOB farm with an act of God, again with limited tonnage available. Growers have been targeting at $8.00/bu FOB on new crop yellows, but this has yet to see any buyer interest. China remains the top importer of our yellow peas, which will continue to hold that market strong. India’s pea plantings are still ahead of pace, so if they get favorable weather over the next couple of months, we cannot expect them to come into the importing market.
Flax prices are still aggressive as we start the new year but vary depending on movement timeline. We see bids range from $18.00/bu – $19.00/bu FOB today, with the former poised for Jan.-Mar. shipment and the latter pushing delivery into the summer months. New crop prices also remain strong with average bids in the $14.50/bu range for Sept.-Dec. delivery. Some analysts are projecting exports for the 2021/22 crop year to be similar to the previous, with the biggest factor being demand for Canadian flax and its effect on prices going forward. This will be influenced by production overseas where strong prices have also encouraged more seeded acres for the upcoming crop year. Ending stocks for the year will be tight as we have seen the last few years. If you are putting some flax in the ground, keep in mind price direction will be influenced by competitors. Locking in the first 10 bushels is not a bad idea at these levels.
The feed wheat markets remain strong as we start 2021 and product continues to trade around $6.50/bu in Central Saskatchewan for April-June movement with standard specs; 58lbs and max 14.5% moisture. Milling CWRS values have been trading between $7.25-$7.60/bu delivered based off #1 quality and 13.5% protein. Our office has also seen new crop #1 durum trade at $8.25 FOB in South East Saskatchewan for Sept./Nov. movement. Those bids seem to have quieted down for now, but we still encourage growers to put in their targets at these levels. Old crop high quality durum has been trading between $8.00 to $8.50/bu FOB depending on location for August pick up. Again, this business is slow, but opportunities do exist. Movement is largely pushed into summer as you can see, but some of these values are too strong to ignore.
Soybean futures are soaring based on dry weather and pod filling concerns in South America; along with China continuing to drain U.S. soybean supplies. Local soybean bids now hover around $14.50/bu picked up depending on location. The Faba bean story remains similar to previous reports, whereby export bids are slim due to a return to normal in global export competition. Feed faba bids are near $7.00/bu FOB farm, location dependent. Dry beans have seen strong bids this fall but will be under pressure from a rebound in supply from this next harvest. There are widespread reports of an unexpected 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.
Canaryseed markets remain flat but strong with bids unchanged from the weeks leading up to the holiday season. There are still buyers looking for product, although not quite as aggressively as they once were, and it seems as though supply and demand have reached an equilibrium. Values hold at $0.32/lb FOB farm for quick movement with buyers showing a “take it or leave it approach” and unwilling to pay more. Even deferring delivery into the summer months doesn’t get much attention, so if you are looking at getting some on books, now may be the time. We are still waiting on the majority to post new crop bids but do have one buyer indicating $0.24/lb FOB farm, with Act of God. If you have a price in mind but the market is not there today, offers are a great way to show your product and get buyers’ attention.
Barley markets are still attempting to find themselves given the push from Chinese exports. Not much on the forefront of new crop pricing for Malt barley, but if you are looking to lock some up, you could pencil in $5.00 – $5.50/bu, area dependent. Feed barley is still holding on strong with some new crop production pricing in the range of $4.50 – $5.00/bu. Growers with barley sitting on the farm right now should be safe to pencil in $5.00/bu for feed or higher pending location. Maltsters are still slow on the spot side of things, but once they start to clean up some of their production contracts you can expect some pricing to come out. Keep in mind that sitting on malt barley because you expect there to be a premium to feed, may not bode well and might not always be the case. Although you are dealing with the same product, you are comparing apples to oranges when it comes to the price of feed affecting the price of Malt. They are two completely separate selling windows. Maltsters can only offer what they are getting end of dollar, so keeping up with the current feed price may put a challenge onto their plates. Feed prices are strong so don’t hesitate to sign up at these values. The magic 8 ball doesn’t have the availability to determine how long these prices will hold on for.
Lentil markets remain quiet as we start out the new year. India has decided to increase tariffs once again, back to 33% while the American tariff remains 55%. Aside from the tariffs, Australia has ample supply to fill India’s needs for the near term and we must remember India is ahead of last year’s seeding rates. This will keep lentils prices from any big gains over the next few months. Major concerns in the lentil market today are: Will India get a good quality crop off? Who else comes into the marketplace besides India? Finally, what will Canadian seeded acreages be next year? All factors to consider when planning sales now or in the future. Bids this week for reds is ranging between $0.24-$0.26/lb FOB farm based on location. Large green lentils are still trading in the $0.33-$0.34/lb FOB farm range, while small greens trade in the $0.27-$0.29/lb FOB farm range. Some new crop pricing is out as well this week and bids are indicated at $0.27/lb for #2 or better for quality large greens, $0.22/lb for a #2 or better red lentil and $0.25/lb for a #2 or better small green, all prices are quoted as FOB farm.
Despite chickpea markets being dull compared to previously active and high valued years, they are still considered to be a lucrative crop to seed. Discussion from the buyer’s side regarding putting a dollar value on a new crop chickpea is relatively quiet given the amount of stock on farm still available and buyers uncertainty in the StatsCan numbers. Old crop values range from $0.24/lb FOB farm to $0.27/lb delivered plant for first quarter of 2021. Feed chickpeas are still in high demand with buyers and bids ranging from mid to high teens depending on downgrading factors. If you are planting chickpeas for the coming year and want to switch up your seed, give us a call for options.
As we get back to work after the holidays, we are seeing generally the same mustard prices. Strength in brown mustard continues both in new crop and old. Spot brown mustard now sits at $0.35/lb FOB farm for January to July pickup. Call your merchant for movement options on this. Yellow is sitting at $0.40/lb FOB farm for February to March movement, while Oriental Forge variety sits at $0.29 for Feb./Mar. as well. Cutlass Oriental remains the outlier but is now steady at $0.27 FOB for that same window. New crop brown mustard is still steady at $0.35/lb, with contracts being offered for September through July of 2022. New crop yellow is sitting at $0.42/lb and oriental as high as $0.30/lb for the same time period. 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.
We are still seeing pretty strong prices on milling oats this week. Bids picked up in the yard over the next few months are near $4/bu in great freight areas of Sask (Southeast) and numbers hit mid $3’s for the long hauls (Northwest). If you’re sitting on oats it’s probably a decent idea to get them locked up and moved out before shipping windows start to look uglier with road bans coming into effect in the next 2 and a half months. Values on feed oats are still strong with low to high $3’s for product that weighs up but is off on color or other grading factors. New crop bids (pushed into early 2022) are showing North of $3/bu in a few areas as a FOB farm value, which is nothing to sneeze at for locking in an oat value most years, and a good start for sure.
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.