The pea market started to pull back this week as more buyers are now willing to wait for new crop. Old crop yellow peas are closer to $16.00/bu picked up, and green peas are now priced around $14.00/bu. New crop bids for both remain at the same level, around $13.50 – 14.00/bu picked up with the act of God. Most of the prairies saw some sort of moisture over the last week which has buyers less concerned about crop availability for the 2022 year. Even with acres estimated to be down and late planting in some areas, the pea market doesn’t look to be changing anytime soon. Maple peas remained quiet with old crop at $16.00/bu and new crop around $14-14.50/bu.
Barley markets continue to hold in there, but given recent showers throughout the prairies, on top of a 2022 harvest growing closer and closer, we see the demand for old crop feed barley dwindling everyday it seems. Today, $9.00/bu FOB farm with a bit of a delayed delivery window is still triggering for old crop feed, and if you were on the fence about selling old crop, now is the time to take the plunge. New crop feed barley remains attractive this week with bids on par with old crop around $9.00/bu FOB farm depending on the area. Not to sound like a broken record, but given the recent rains, we suspect this price to drop a bit in the coming weeks, if not days. Old crop and new crop malt barley still seems to be a hand to mouth purchase with indications around $10/bu and $9/bu, respectively. Your best bet is to call in with old crop specs and/or new crop acres and let us do the work for you. Current values on all types of barley, new crop and old, continue to make for sensible sales.
Current wheat markets remain much the same as previous weeks. Old crop values are trading in that $15.00/bu delivered range for #1, 13.5% protein, and depending on the day, maybe a few cents more. We continue to see swings daily on the pricing, but it seems to be only a few cents at a time. Prices go up a bit, buyers lock in a few tonnes, and are comfortable to drop off until demand calls for more. Given recent showers throughout the prairies and anticipation of more to come, we suspect that buyer demand, whether it be old crop or new, will slowly start to fade away. Old crop feed value seems to be dropping off as well, but growers can likely still catch bids in that $12.50 – $13.00/bu FOB farm range. For anything above these values, or to get more insight as to what we are seeing, feel free to call your favourite merchant today!
Well, a bit of tea in the chickpea market this week. The World Food Program will be awarding a tender next week, and while it is for a relatively small amount of volume (2800MTS), it could give the market a bit of a bump. We recommend putting in targets today rather than waiting for a bid hike as the targets typically hit first, and this amount will fill quickly. In addition, there is chatter that Turkey’s production was not as good as expected, and with slower movement out of the Black Sea region, we could see that transfer to interest in North American supply. It is unclear how many bushels are actually left on the farm today, but we are still finding pockets of supply on the regular across Western Canada. Old and new crop values still hover around $0.50/lb FOB farm with an AOG. Planting is 96% complete and there has been favourable weather in many areas, but the reaction from the market has been surprisingly sluggish. Sample and feed product is still on the want list of every buyer with bids ranging from $0.40-$0.45/lb depending on location.
Mustard markets remain ripe for the picking – whether that be old crop or new. Despite a slight reduction in values over the past couple weeks, all types of mustard continue to show bids that just make sense. Old crop yellow mustard is still indicated in the $1.50/lb range, brown sits somewhere around $2.00/lb and oriental likely still triggers at $0.90-$1.00/lb, all FOB farm and moved before harvest. New crop mustard remains attractive as well with bids on yellow and brown still indicated around $0.95-1.00/lb, and oriental dragging only slightly behind around the $0.90/lb mark. These bids still include a full act of God and are quoted as FOB the farm. Recent rains across much of the prairies may ease some of the excitement in this market, but on the other hand, reports of flea beetles, frost damage, and poor emergence are starting to roll in. We hope that some moisture will help to push those plants along and growers can produce a healthy crop, but only time will tell how the 2022/23 production will shape up. Grower targets continue to be our best marketing tool when it comes to mustard; don’t leave money on the table – call your merchant to discuss using this system to secure the highest values.
The spot flax market has started to quiet down this week with bids hit and miss. Buyers seem to be on hold waiting for new crop to become available, while stretching out their inventory. With the rain events over the last week that has provided some coverage into the drier areas, buyers are not as concerned about the 2022 crop. New crop prices are still $31.00/bu picked up this week with an act of God. While there are still many unknowns in the market, the Black Sea region will likely continue to fill the voids from Russia. China and Europe have adapted to find cheaper sources of flax from other suppliers. Current old crop bids sit in the range of $35/bu FOB farm, give or take pending location.
The oats market has been a bit of an afterthought as of late, with buyers and sellers seemingly unconcerned with what prices are doing, which isn’t a lot. Spot prices are tough to track down, but we still have a few options around showing delivered in prices at the high $8/bu range on a milling #2 oat. For fall, the price opportunities are showing that $7/bu number again in a few areas. Oat buyers don’t offer an act of God on the contracts, but we do have some buyers that offered a roll over option into the following year, providing decent protection against a buyout. The September oats futures are still running around where they have been for the last month at around $6.25/bu. Increased interest in new crop from buyers might lead back to crop concerns and getting more coverage as the futures prices have not lent to any increases of late. Feed oats bids can still be found if you are looking to part with some lower quality product; we would expect to see bids at $6.50/bu or better at this point.
The canary market continues to hold its own again this week, trading sideways, while most other commodities have dipped. Buyer bids hover around 48-49c/lb range as producers continue to move pockets here and there. Minimal on farm stock and reports of tighter seeding intentions (15% less acres than last year) on this commodity continue to prop up buyer bids. Regardless of whether we see a bounce back on crop yield for 22/23, pricing indications look to remain steady. The price spread on old crop to new remains around 6-7c/lb less with an act of God for fall movement.
Lentil prices continue to soften as old crop prices drop down to meet new crop pricing. Old crop large green lentils have lost at minimum 2 cents since last week, with 55c/lb now the peak; many buyers are bidding less. Reds have lost about a cent this week, with 40 cents delivered plant being the high today. Lentil markets will likely remain quiet now until new crop hits the bin. Most buyers seem to have most of their July sales covered, so not many companies are actively hunting for old crop. New crop lentils are still sitting at strong pricing. New crop large greens are at trading 46 cents for a #2 or better, while small greens are posted at 40 cents for #2 & 42 cents for #1. Red lentils have new crop bids at 37 to 38 cents for a #2 or better. All the new crop contracts include an Act of God and are indicated as FOB farm. At these levels, lentils still pencil out to be the 7th & 8th best returning crops. Mustards, canola, oats and malt barley are the only crops with better returns. With the uncertainty in all markets lately, give our office a call and we will try and give you the information you need to make an informed decision.
US soybean crop conditions and progress are both in good shape. Most of what’s remaining to be planted is double crop beans and will get done once the winter wheat harvest is wrapped up. As is typical, crop condition scores and weather-related issues will play a strong hand in market direction. Local bids are location dependent and range from $17.50 -$18.00/bu FOB farm. Dry bean planting delays or flooding is a significant factor on both sides of the border. Australian faba production is still forecasted to exceed the 10-year average. New crop faba bids are showing up around $15.00/bu FOB farm for a #2. Old crop feed faba bids are near $13/bu FOB farm and when old crop #2 demand periodically occurs, it is often near $16/bu FOB farm.
Recent rains in Alberta and western Saskatchewan have put some pressure on the canola market. However, over in Manitoba, rain has halted planting efforts. Most recent forecasts state planting at 87 per cent complete. ICE futures are not only watching local crop conditions, but continue to take direction from global edible oil markets and European rapeseed values. Old crop canola values range from $24.50-$25.50/bu picked up, location dependent. New crop values range from $22.50-$23.00/bu picked up.
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.