Oat markets remain relatively unchanged this week but still offer some decent selling opportunities. Old crop oats are indicated around $5.00 – $5.25/bu delivered to various locations for non-glyphosate, good milling quality product, which translates to $4.60-$4.95/bu FOB farm pending freight. Considering the carryover from the 2023 crop year and the rains throughout the prairies to start this year, expectations of major price increases seem minimal. Expected supply appears to outweigh demand. New crop bids are not far off old crop, floating around $4.75 – $5.00/bu delivered. Locking in these values makes sense to ensure cash flow and clear up some harvest bin space. Tailored FOB farm bids are available, so call in today to let us work the freight for you.

 

The pea market has seen very little change this week. Old crop values are converging with new crop, which is typical for this time of year. Spot yellow peas are now largely bid at $13.00/bu delivered, with slightly higher opportunities possible using a firm offer. Old crop green peas are indicated around $16.00 – $18.00/bu delivered, while maple peas still show bids at $25.00 – $26.00/bu picked up, though these values are getting harder to find. Production contract values remain similar to last week, with yellow peas as high as $12.25/bu delivered, green peas at $13.50/bu picked up, and maple peas at $20.00 – $21.00/bu picked up. All new crop values include an Act of God clause for up to 15 bu/acre. Buyers are closely monitoring offers, so if you have a target price in mind, let your merchant know.

 

Flax prices have shown a small increase in demand this week, with $17.00/bu picked up attainable once again. New crop pricing sits in relatively the same range, quoted at $16.50 – $17.00/bu FOB, with an Act of God clause. Growers willing to take on a bit more risk may be able to attain new crop bids closer to $17.50/bu on a DDC contract (no AOG). With North American supplies expected to be tight for the 2024/25 year, global market issues could arise if the Black Sea region also lacks in flax production. For now, overseas conditions remain mixed, but it is still early in the growing season. Supplies headed to China or Europe could face competition if global production is lower than in 2023/24. The supply carryover is currently keeping values from showing any major rallies.

 

Canola markets have had a rough week, with July futures losing $50/mt and November futures dropping $40/mt since last week. Canola is not alone in its downturn, as soy, corn, and wheat have also struggled. Hopefully, much of the old crop still in bins was sold during the recent rally. Now, we wait to see where the market bottoms out and starts to recover. Crop production prospects in Canada look strong for now, but the growing season is long, and challenges may arise. Weather issues in other parts of the world persist, so we must monitor developments closely. Current bids range from $13.20 to $14.20/bu from now into winter, depending on location and delivery timeline. Touch base with your merchant for a bid tailored to your needs.

 

Timely and heavy rains in many mustard-growing areas have set the Saskatchewan mustard crop up well, with reports showing 30% of the crop rated as excellent and 60% as good as of May 27th. Additional rains in early June have further supported the crop’s development. While weather conditions are favorable, it’s crucial to watch for insect pressure, as early reports of flea beetles in oilseeds have emerged. Market prices for mustard remain stagnant. Old crop yellow mustard is trading in the low 50s, while brown and oriental varieties are in the low 40s. Sales are limited, with some buyers on the sidelines, so discuss options with your merchant to capitalize on available opportunities. New crop prices are indicated at $0.52/lb for yellow, $0.42/lb for brown, and $0.40/lb for oriental for full crop year shipping. We will continue to monitor the EU tariff on Russian oilseeds to see how it impacts Canadian mustard demand this summer.

 

With strong planting conditions, the Saskatchewan crop report shows the majority of the province’s barley crop rated as excellent – good. Barley prices remain similar to last week, with bids between $5.00 and $5.65/bu FOB farm, heavily dependent on location, though a couple buyers have reported seeing weakness in the market as of yesterday (Tuesday).  US prices are around USD $3.60/bu for summer shipping. Old and new crop prices have converged, showing similar values regardless of the shipping timeframe. For those looking to ensure bin space before harvest, buyers are seeking summer coverage and are moving products within June and July. The malt market remains quiet, with some growers turning to the feed market to move their product.

 

As of May 27th, Saskatchewan Agriculture reports that 78% of chickpea acres have been planted, slightly below the 10-year average. With the insurance planting deadline on May 21, this could translate to fewer acres for the coming year. Initial estimates put the acreage at 400,000, but it is still too early to confirm. Growing conditions have been favorable so far, but excessive rain could lead to disease and disrupt yields. Globally, chickpea markets are well-supplied. Australia, Mexico, and Turkey all report increased production from last year, though these numbers can be variable. Buyers remain cautious, purchasing only as needed, while growers are seeking to clear out their bins. Both old and new crop prices are hovering around $0.45/lb FOB farm, with freight sensitivity and daily buyer variations. Feed and sample markets occasionally emerge, but finding a buyer and determining a value requires significant effort.

 

The wheat market is experiencing significant declines this week. US winter wheat crops are being harvested in the Southern Plains, progressing three points ahead of the five-year average. Additionally, US red spring wheat conditions are rated 10% higher than last year, with 74% reported good to excellent, further pushing futures prices down as the US typically does not import wheat. There is hope for some relief as India may need to import 3-5 million tons of wheat, up from 120,000 tons last year, with talks of scrapping import duties after June. Additionally, a Russian shortfall could lead these two countries to absorb about 17 million tons of wheat supplies. Locally, with most seeding completed and a strong start to the growing season, bids are varied. In central Saskatchewan, bids are around $8.70/bu delivered, with new crop values around $8.50/bu delivered. Keep an eye out for occasional price increases and premiums. On the feed side, prices remain steady, with buyers offering $7.00-$7.75/bu FOB depending on farm location.

 

Soybean prices are still facing recent headwinds. Analysts are processing the impact of southern Brazil’s flooding, which is estimated to have wiped out roughly 3% of Brazil’s total production. This is expected to impact regional export quantities and local biodiesel production. In response, Argentina has stepped up with export soybean sales. Meanwhile, US planting is progressing well, which is putting additional pressure on the market. Soybean bids are in the range of $13.50-$13.75/bu FOB farm, depending on location. New crop Canadian faba acres are expected to increase. New crop bids for #2 quality tannin varieties are around $10/bu FOB farm. Old crop #2 faba bids range from $10.00-$10.50/bu FOB farm, while feed quality values are between $9.50-$10.00/bu FOB farm, depending on location. Dry bean exports to Mexico have bolstered the market, with pinto and black beans fetching attractive bids. Black beans are leading the way, while pinto beans are a little slower to respond.

 

This year’s lentil crop is off to a good start according to the Saskatchewan Crop Report. Lentil planting is 91% complete, with 37% rated in excellent condition and 59% in good condition, making lentils the best-performing crop in the report. Prices have remained relatively stable from last week. Old crop reds are still trading in the $0.35-$0.36/lb FOB range, while new crop reds with an Act of God clause are trading at $0.33lb. Old crop large green lentil trades have slowed, but prices remain in the mid to high $0.70s. New crop large greens are trading at $0.53/lb with an Act of God. Buyers are still showing interest in both old and new crop medium green lentils, with new crop trading at $0.36 USD, and spot sitting at $0.52/lb USD. Small greens are trading in the low to mid $0.70s, and new crop is in the $0.49-$0.50/lb range. Specialty lentils, such as French green and beluga, are quiet at the moment. If crop conditions remain good to excellent, it could start to put pressure on pricing.

 

The canary seed market showed strength again this week, with spot prices picking up by one cent from last week’s levels. With the ongoing rain around the province, there are creeping concerns about available bin space. Wouldn’t that be a good problem to have again? Bids today offer growers another chance to secure contracts at a great value for both cash flow and to make room to store the upcoming harvest. Current old crop bids are indicated at $0.45/lb picked up on the farm, while fall prices with an Act of God clause are sitting at $0.36/lb picked up on the farm. This drastic spread in value should encourage growers to clean out what’s left regardless of the situation. Those who don’t have inventory on hand and are looking at production contracts, which are generally offered for the first 10 bushels per acre, might be able to negotiate a slightly higher hedge up to 15bpa.

 

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.