The feed wheat market has been a little more up and down this past week, as bids are tailing off in some areas, but still looking decent in others. Many spot prices on feed wheat are down to $5.50/bu range, but select locations (where freight makes sense) are still seeing bids at $5.90 picked up. The recent rains have been a big catalyst as to why these prices are slipping. The milling wheat markets continue to get beat up as most of the commodity markets have as of late. Current indications are just under $7.00/bu delivered to plant as the weak loonie shields our price a bit. We have a few bids for fall/new year movement on durum depending on area (West Sask and SE Sask primarily) ranging from $7.00/bu delivered to plant to $7.50 picked up in the yard, call for details.
With everything happening overseas, it was no surprise that China was the largest pea buyer in the last two months. India doesn’t seem to be changing their mind on tariffs any time soon. On the new crop side, we have some opportunities going to the United Stated at $7-7.25/bu picked up on yellow peas for growers in the South east of Saskatchewan. New crop green peas are trading at $8.25/bu delivered. For supplies that are in the bin, we are going to be carrying over a large amount of yellow peas. Currently bids are trading at $6.50-$7/bu picked up depending on location. Russia and Ukraine are expected to have a decline in pea production, which could help with the export competition we have been experiencing. However, how much this affects us will depend on how much the Indian demand recovers, as per a stat report.
No summer loving for red lentils this past week. Bids started out at 17.5¢ delivered plant and by the end of the week most places are now trading to 16.5¢ delivered with the odd offer trading at getting 17¢ delivered. With the recent rains and product left in the bin, no one is worried about running short of red lentils. Market reports are suggesting that supply left in the bin could be as high as 1 million MT. By the end of the month we will have a good idea on the acres of lentils in the ground, this will likely put more downside pressure on the red lentil market. Green lentils may become softer if the seeded acres have increased as most of the industry is estimating. Current green prices this week were stable with most trades for a number 2 at 25-26¢ and maybe a touch higher if the product was closer to a number 1 quality. New crop was trading at 25¢ for a number 1 and 23¢ for a number 2. Small green lentils have been trading around the 23¢ for a number 1. New crop small greens are trading at or near the same level. Things to think about this week: trading reds at 17¢ FOB if becomes available and new crop large greens at the above stated levels – these are not bad values, especially with most signs pointing to a softer lentil market to come.
Reports suggest there is a lot less canaryseed out there as once thought, but we all know someone with a few bins hiding in the back 40, so these reports may be stretched a little. That being said, you might see prices rise in the not so distant future in response. Current prices on old crop are sitting between 21 to 22c/lb FOB farm; generally, no change from last week. Despite an expected decrease in canaryseed acres, new crop prices are still sitting around 21 c/lb FOB the farm with an AOG. There have been some glorious rains this past week in the canaryseed growing areas, which is good news because canary is very dependent on moisture. It will improve yield and help make up for an acreage decrease.
Mustard is still in the same tight trading range it has been for the last few weeks. Generally, most areas have caught some rain so a little relief has been provided for most growing areas. Attention is now turning to the new crop conditions for pricing, as old crop sales seem to be getting close to finished from processors as their export sales for short term are being fulfilled. So, spot pricing does look like it will remain relatively flat for the foreseeable future unless weather turns very dry and hot with no further rain. Right now, that looks like the only thing to turn the market one way or another. That being said, it might be a good time to get some old crop moved for June and July and new crop production locked up. Yellow mustard sits at $0.34 to $0.35/lb on old crop and $0.35/lb on new. Old crop brown varieties continue to hover around $0.40/lb and $0.33/lb on new crop. Finally, oriental mustard values hover around $0.27-$0.28/lb for both old and new crop, with a small opportunity for better spot values if you have Vulcan variety. If these prices don’t suit you today, call your merchant with some offers if you have a target in mind. This is a great way to show your mustard to various buyers.
Yet another week of deafening silence in the chickpea markets. Two things remain constant as we creep through the summer and wait for harvest: 1. even if acres divert from prediction they are up, up, up and 2. weather is the only thing that could flip the script on the prices. There continues to be a dry trend in parts of Saskatchewan, but so far it has not triggered any concern. In addition, several producers took advantage of high priced new crop contracts at the end of 2017 and are not interested in locking in any more acres at today’s levels. Wait and see if the sentiment from both buy and sell. New crop and old crop bids are par at $0.28-$0.30/lb depending on location.
Barley this week has taken a turn for the worst. With all the rain the prairies have been getting, feedlots are not too worried, and the pastures are greening up very nicely. Crops are looking very good for barley now with the rain so we are seeing prices creep back down to around $4.35/bu FOB farm for June/July movement. With that being said, don’t wait too long to move your barley because once august hits and harvest is underway, will be down to new crop values, which are around $3.85/bu FOB farm. New crop bids still have an Act of God clause attached to them if you are a little hesitant. Offers are a great way to show your grain to all our buyers so make sure you are talking to your merchant on that.
Flax prices appear to be down slightly this week on the old crop side of things. #1 brown flax is tradable at $12.75/bu delivered to a few different locations throughout the province. We can always work back the freight to get a price right at your bin based off that. New crop flax remains at the $12.25/bu price level picked up in your yard for a Sept-Dec movement. Yellow flax continues to be difficult to move with very little buyer demand.
The oats market continues to be quiet week after week with very little signs of life. #2 CW oats can be traded at levels slightly below $2.50/bu picked up in your yard. On the feed side of things, heavy and dry oats appear to be worth $2.25/bu picked up. These prices get stronger the further south you move in the province. New crop milling oats indications are at $2.90-$3.00/bu delivered to plant on the east side of the province.
Weakness in the canola market continues today, piggy backing weaker soybean markets. Nearby futures lost $2.5/MT while new crop (November) futures posted losses a touch over $5/MT. Basis levels strengthened this week to as high as +$7/MT on old crop and -$25/MT on new crop; both delivered to plant. This works back to roughly $11.80/bu delivered in for Jun/Jul and $10.88/bu for Aug/Sep delivery. Please keep in touch with your merchant on changing futures, basis and markets. Also, feel free to take advantage of our offer system, which helps you to obtain top market values.
Soybean market is breezing past yesterday’s USDA stocks report and pressuring down further based on trade uncertainty. A decision on whether or not the US follows through with proposed tariffs on $50 billion of Chinese goods should be known by Friday. US soybean seeded acreage will be reported in the July report. Today’s leg down in soybean futures has plunged the price into an oversold position, trading near last year’s July contract lows. Local soybean bids have recently ranged $10.30-$10.50/bu FOB farm depending on location. Local faba bean bids are in the $6.25-$6.50/bu FOB farm range for feed quality depending on location.
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.