Milling quality flax prices are still holding but some buyers are starting to make that transition from old to new crop pricing. The window is also getting smaller for old crop to move out before buyers just put on a hold and wait for the new crop to come off. Canadian supplies are pegged to remain tight, but the demand is what is shifting. Canadian seeded flax acres are more concentrated here in Saskatchewan with a 5% increase. Alberta acres are down by 15% while Manitoba’s seeded flax acres are even lower by 48%. The larger than expected US acres will restrict some imports. The wild card will be the Black Sea region and the size of their crop.
The oat market remains strong with many companies paying upwards of $4.25 to $4.50/bu delivered in. If you are looking for a price FOB farm or would like to put in a target, please call the office. The feed oat market also is very consistent, and product has been trading between $2.50 to $3.00/bu FOB the farm for dry/heavy oats. A friendly reminder that some buyers have moved to only taking glyphosate free oats and that these sorts of markets seem to be popping up more often. Something to keep in mind this harvest season.
Pea crops are looking decent at this time of the year, however concerns about disease are starting to arise. These wet conditions could start to cause issues as some areas are already reporting yellowing in pulse crops. Right now, pea bids are quiet, however come harvest we could see some changes. Green pea acres are up and if a decent crop comes off, prices we could see prices soften a bit. On the other hand, yellow pea carryout supply and planted acreage is down, therefore we could see slight price recovery after harvest. Green peas are trading at $9.00/bu and new crop at $8.50/bu FOB. Yellow peas are $6.50/bu for old crop and $7.00/bu FOB on new crop. Maple peas have remained quiet with old crop at $8.00/bu and new crop at $9.00/bu FOB.
The canola crop across the prairies looks to be in relatively good shape although some areas are showing concern over excess moisture. Still, it is reported that about 72% of the crop is in good to excellent shape. November and January futures are down this morning as we write. Along with a rise in the Canadian dollar, weaker vegoil complex seems to be the culprit for these softening markets. Producer delivered plant bids remain relatively unchanged with the highs around $10.50/bu in the northwest and down to $10.15/bu in the southwest part of the province. These values translate back to roughly $9.75/bu range FOB farm and higher across Saskatchewan.
Chickpea markets are status quo despite buzz of root rot and issues in applications of fungicide. That’s not to say that it won’t change, but right now there does not seem to be a huge concern over quality for the current crop with the belief that the bins are full of good quality. Old crop values for #2 Kabulis have slipped to $0.25-0.26/lb FOB farm and new crop slightly below that with an AOG. Feed chickpeas are starting to slow on movement as processors fill up, but bids remain the same @ $0.10-$0.12/lb FOB farm.
Low StatCan seeded acres on mustard have provided a bit more fodder to the current mustard spot price with the yellow varieties creeping back up to 40 cents/lb for summer movement. We have heard some oriental interest in the mid-twenties plus range and brown prices have saw some interest north of 30 cents on the right grower target. The seeded acreage report showed drastic reduction in the oriental and brown mustard acres and a smaller reduction in yellow. Our carryout numbers this year are tight but not as tight as they could be as our exports are over 10% behind the normal pace; so the cupboards are not as bade as they could/should be. This slow export pace, along with some skepticism in the seeded acreage report, is why we see values creeping up a little but not going wild at this juncture. The crop conditions for mustard are reported to be very good, but mustard does tend to start strong and creep lower as the hot and dry season comes along.
Canary seed prices remain stable for new crop at 26 cents for fall delivery with an Act of God. Old crop has been trading at 28 cents but that is getting hard to find especially for quick movement. The industry feels that 20/21 supply is going to remain tight as the acreage numbers are modest. If trade numbers remain similar to 19/20 numbers, future canary prices should remain similar to this past year.
Old crop red lentil prices seem to have lost a cent or two pricing over the last week. This is normal as we near the upcoming harvest. If grain cannot be delivered before the end of July, then most companies will wait for the new crop to come off and start taking delivery of their precontracted product. Even though old crop prices are slipping new crop prices remain around the 25-26 cent mark for September to December delivery. Large green lentils remain strong for old and new crop. Old crop #2’s are still trading at 29-30 cents, and new crop values average 29 cents for #1 and 28 cents for a #2. We also had a buyer come to us this week looking for a few loads of French greens. If you still have some in the bin give us call to find out more information.
Feed barley prices are hanging on late in the crop year with bids not changing much over the past few weeks. Heavy and dry feed barley will fetch an attractive $4.00-$4.40/bushel FOB farm depending on your location for July/August movement. Bids look strongest the further west you are in Saskatchewan. We always have bids at discounted prices for any off-spec barley as well so be sure to let us know what’s in your bins. New crop feed barley bids have shown up and are as high as $4.00/bushel FOB farm in western Saskatchewan.
Weather and crop ratings continue to underpin supply pressure, recently sending futures prices higher. China continues to firm up purchases as the country expands its poultry and swine herds. Local soybean bids continue to hover around $9.50-$10.00/bu picked up depending on location. Still good opportunities to contract new crop faba bids at $8.00/bu for #2 export quality. The acreage increase in dry beans is old news. Dry bean production will still be a question mark as we move through summer and into harvest. If seeded acres and crop intentions come to fruition, one can expect some pressure on local cash bids.
From a US and a commodity futures perspective, concerns about looming production cuts following last week’s La Niña weather outlook has offered modest support to the wheat complex. Across the Western Prairies wheat production volume per acre is anticipated to be up due to favorable weather patterns. Quality becomes the question now, with regard to grade and protein levels. Old crop milling wheat #2-13.5 hovering near $6.50 delivered. Feed wheat bids are ranging from $5.00-$5.50 picked up location dependent.
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.