Chickpea acres are being seeded, and growing conditions, though slightly wet in some areas, are favorable. More production contracts have been written in the last 7 days than what seems like all year, with buyers bidding $0.44/lb FOB farm for #2 Kabuli chickpeas on the first 10 bu/acre with an Act of God (AOG) clause. This bid level seems workable for growers, but the depth of the bid is uncertain. Old crop remains very quiet, with bids for #2 Kabuli chickpeas still around $0.44/lb FOB farm for June-July movement. Not many growers are willing to sell stored product at this level, but with harvest just over 60 days away, today’s matching old and new crop values may be worth consideration to make room for this year’s harvest.

Canaryseed values remain strong into mid-June, with no significant changes in new or old crop prices. Old crop continues to be indicated at $0.44-$0.45/lb FOB farm for prompt movement, pulling back slightly for July. New crop remains steady at $0.36/lb FOB farm with an AOG clause up to 15 bushels per acre. Given the time frame until this year’s harvest and recent showers across the prairies, it makes sense to clear out the bins now. At harvest, buyers will likely opt to move cheaper product from the combine rather than purchasing on the open market.

The oat market has seen little change over the past year, and this trend is likely to continue. Although there have been some short-term rallies and fluctuations, the price spread has not varied more than a dollar per bushel. Today, old crop oats are still indicated at $4.60-$4.90 FOB farm, depending on quality and location. New crop indications mimic these values, with delivery periods extending further out, as is typical for this time of year. If these values aren’t appealing, posting an offer might catch an open window, but pushing prices over $5.00/bu FOB seems unrealistic today. With continued rains, we could be in for a good oat crop this year, so don’t get caught on the outside looking in. Consider moving what is left in the bin to make room for new crop while the demand side of the equation is active.

Generally, Western Canada is experiencing favorable crop conditions due some much rain, but the threat of excessive moisture looms over head and could become a concern for pulse crops. Keeping with theme of weather, issues in Australia, Russia, and Kazakhstan also warrant monitoring and could offer this market some direction should production numbers and/or quality falter. In India, lentil prices have turned slightly higher, potentially indicating lower reserves and/or farmers willingness to hold supplies for higher prices. In terms of pricing domestically, not much has changed this week. Green lentils continue to slowly bridge the gap between old and new crop values. Spot large greens trade around $0.75/lb, small greens at $0.72-$0.73, and medium greens at $0.50-$0.52 USD, all picked up on the farm. Old crop red lentils traded at $0.36/lb picked up and demand seems slightly stronger than the week prior. Production contract values are indicated at $0.53-$0.55/lb for large greens, $0.49 for small greens, $0.35-$0.36 USD for medium greens, and $0.33 for red lentils, all with an AOG clause.

Buyer interest in spot pea markets has tailed off in recent weeks as end users seem to be waiting for new crop opportunities. Bids, remain similar though, largely unchanged from last week, with the spot market showing numbers around $13/bu for yellows, greens flirting with the $17/bu range, and maples in the mid-twenties for those who still have a few of those unicorns in the bin. New crop interest remains present at $12.25/bu delivered for yellows and $14.50/bu delivered for green peas, while maples are still catching opportunities at $20-$21/bu picked up on the farm; all indicated with an AOG. With a bit of an increase in seeded acres (15%) from last year and some good early moisture in many areas, it may be prudent to lock in some sales now. If you still have product in the bin, we suggest unloading it sooner rather than later, as spot prices will likely continue to fade towards new crop values.

The roller coaster continues in the wheat market, with prices rising yesterday only to slide back again today. The uptick was driven by reports from Russia indicating that frost affected roughly 15-30% of winter crops, a more significant impact than previously thought. Additionally, a decrease in US winter and spring wheat ratings underpinned prices. In India, the second-largest producer and consumer of wheat, there’s talk of removing export bans due to increased output. Later today, the USDA will release its supply and demand report, which is expected to show average trade estimates up from previous expectations, with ending stocks unchanged. This has somewhat muted prices. Locally, wheat pricing is quite varied, with bid spreads of roughly $0.80/bu. Keep an eye out for specials in the $8.50-$8.60/bu range. Feed wheat bids are floating around $7-$8/bu FOB, depending on farm location.

Recent rains have benefited mustard-growing areas, keeping crops in good shape as we approach mid-June. However, there have been reports of flea beetle damage, leading to some scattered re-seeding. Market prices for spot mustard have slipped slightly. Old crop yellow mustard is trading around 50 cents, while brown and oriental varieties are indicating around 40 cents. That said, it can be difficult to attain these values as firm bids, as in some cases brown and oriental mustard indications slip into the high 30’s when product is shown. Sales are limited, and some buyers are on the sidelines, so discuss with your merchant how to capitalize on a slow market. New crop prices are indicated at $0.52-$0.53/lb for yellow, $0.40/lb for brown, and $0.38/lb for oriental for full crop year shipping with an AOG. It’s advisable to talk to your merchant about the best strategy, as new crop yellow bids have sometimes traded higher on limited tonnage.

US soybean planting is 87% complete, which is 8% behind last year’s pace but just ahead of the 5-year average. Today’s USDA WASDE report largely held numbers steady with some moderate adjustments. 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, while Australian faba production is anticipated to decline for the fourth straight year. 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, with feed quality values near $9.50-$10.00/bu, location-dependent. Planting delays and alternate seeding plans may cause North American dry bean supply to be tighter than previously anticipated, potentially bolstering prices. Primary exports are targeted towards Mexico. Pinto and black beans are fetching attractive bids and are largely running on par.

As anticipated based on buyer comments last week, barley prices have pulled back this week, losing $0.20-$0.30/bu in most areas. The price spread between regions remains consistent, with bids around $4.75/bu FOB farm on the east side of Saskatchewan and approximately $5.40/bu FOB farm on the west side. Opportunities to empty some bins still exist, but buyers are beginning to look towards harvest as old and new crop prices converge. As of June 3rd, 92% of Saskatchewan’s barley crop and 94% of Alberta’s barley crop were in the ground. A significant portion of these acres have received good moisture this spring and are developing quickly. Locally, malt bids remain quiet, with some sellers turning their higher-quality product to the feed market to generate cash flow. On a global scale, Australia is predicting one of its largest barley crops on record, potentially reaching 11.5 million metric tonnes. This would be Australia’s 5th largest barley crop and is expected to remain highly competitive against Canadian barley in the Chinese market.

Flax prices continue to hold steady this week, with current bids still sitting around $17.00/bu picked up on the farm. Slightly higher valued contracts have been traded on firm offer in Saskatchewan, which is the reason we encourage growers to use this marketing tool to capture top end values. In Alberta, buyers have maintained prices at approximately $16.50/bu picked up, without breaking into Saskatchewan pricing. New crop values also remain stable at $16.50/bu FOB, with movement expected in the last quarter of the year on a 10 bushel per acre Act of God clause. Looking ahead, potential increased restrictions on Russian exports this year might allow local values some room to grow. With fewer acres expected to be planted, there might be a positive outlook for both old and new crop growers, potentially providing a nice boost by year’s end.

Canola has had a tough week, unable to break through the $635/MT ceiling and dropping just shy of the $615/MT floor. The market is under pressure from other commodities such as Chicago soybeans, soy oil, and Malaysian palm oil. Early moisture in Western Canada is also affecting prices negatively. Despite some positive news about European rapeseed conditions, the overall sentiment remains bearish. Current prices range from $13.30 to $13.85/bu from east to west. There have been reports of flea beetle damage in certain areas, leading to reseeding efforts. A potential later-than-usual harvest due to late-seeded canola is another concern. Basis spreads are also a factor, with differences of $25/MT seen between purchasers. This week basis levels of negative $25/MT for November delivery are seen with one company, while negative $50/MT is seen for the same timeframe with another, making it prudent to discuss selling options with your merchant. This market is likely to remain unsettled until closer to harvest.

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.