Flax trades seem to have shown a little bit of life this week as some buyers have perked up interest and are actively starting to look for product. This is not to say we saw a big bump in bids, but some business at $17-$17.50/bu was a workable number for both buyers and sellers and got product on the books. Most traded for movement timelines in and around road ban periods, but some buyers are requesting movement into the summer months as nearby options are fairly locked up. It seems that some of this business has flax heading back east as interested bidders are predominantly active in Chinese markets. This could possibly indicate we are seeing the amount of product shipping from former USSR letting up. New crop did have some buyer interest that filled quickly at $18/bu on farm with act of God this week and although the program is full for the time being, we can stack offers in hopes more tonnage opens up. There has been limited interest in spot yellow flax around the low twenties per bushel if you need some bin space or cashflow, but new crop bids remain unreleased thus far.
Canaryseed markets continue along their unchanged path this week, still boasting some great sell values on both new and old crop. Unlike having to send the canary in to sniff out the mine, these canaryseed values are guaranteed a safe and smart decision to get some product hedged against possible downturn, on top of locking in early shipping windows and cashflow. Old crop values continue to trade around that $0.36-$0.38/lb FOB farm mark with some quicker shipment options available. New crop values are also still triggering in that $0.34 – $0.35/lb FOB farm range with buyers doing anywhere from 10 – 15 bushels to the acre under AOG. With recent snowfall throughout the prairies, and most hopeful that starting moisture will be adequate, getting some of this crop locked in seems like a power move.
It looks as though canola markets will roll into March and end February without much change from weeks past. Although we’ve seen fluctuation to daily futures, adjustments to basis levels have local spot bids averaging out in quite similar ranges each week. Current indications on old crop canola sit around that $18.00/bu mark, but for an accurate value, best bet is to call in and let us tailor a bid to your farm. New crop values on canola also remain at levels that one should strongly consider selling their first 10 – 20 bushels into, currently sitting at $16.50 – $17.00/bu FOB. These are strong indications and those types of bids, paired with the recently released Alberta and Saskatchewan crop insurance numbers, have us guessing it may be just the push those on the fence about seeding canola needed. As always if you are looking for a bit higher value, we encourage placing a firm offer to catch any potential spikes within the market.
Green peas have seen some buying demand over the last week with prices in the $13.50/bu FOB range. For those with bleached green peas in the bins, there is also demand and movement with discounts, so call in with specs or send us a sample for review. We also have buyer interest in US green peas around $10.50/bu FOB farm for low bleach. Yellow pea pricing sits around $12.50/bu picked up, give or take 25 cents depending on location. Historical pricing charts from analysts, show high returns in seven of the last nine years when selling in the first week of March so growers may want to keep a closer eye on pricing over the next week. We will have to see if this trend holds true. New crop green and yellow pea programs are slow to come out, but prices are indicated around $10.50/bu for yellows and $11.50-$12.00/bu for greens. Both are likely to contain an act of God clause. Call our office for details if you’re interested in making a sale. For those with maple peas still in the bins, prices are flat in the $16-$17.00/bu price range, picked up. If you are in need of any type of pea seed, reach out to your Rayglen merchant as we have some options available.
The wheat market is on the softer side and we are expected to see continued pull back over the next month. Record wheat sales out of the Black Sea region are a little surprising considering everything going on over there. With what looks like an increase in acres here and south of the border, we could see pricing continue to slide, barring any pre-planting weather concerns in Europe. That comes a bit down the road from now, but something to keep an eye on. A nice little price perk in central SK was seen today on #2 CWRS at 11.50/bu delivered in for Mar-Apr shipping. This is a strong spot bid compared to other pricing indications popping up around the $11.20’s/bu range. Flipping to feed, bids seem to be ranging around $10.25-10.75/bu picked up on the farm, making it quite comparable to some milling bids after factoring in some freight. Sliding over to durum, you can catch $12.50/bu picked up on the farm for #3 CWAD or better, within a couple hundred KM striking distance of Saskatoon, should you be looking for a home.
Canadian chickpea exports are at 91,500MTS for year to date with the bulk of the shipments going to Turkey and the US. This number is the highest it has been since 2000/01. While it feels like the market is quiet, things are happening in the background. Prices have not changed on average but we have seen opportunities arise where offers are hit, and a little bump is given for a set amount of volume, then shut off again. It has been said over and over that the value of North American chickpeas are not globally tradeable and with the US being a main destination for our export, it validates that reality. When speaking to a buyer this week they advised they had their first firm potential business for old crop in a month and the interest equated to $.45/lb FOB farm to the grower. New crop bids are at a lower spread to this and only a handful of buyers with pay $.45/lb +. With the speculated amount of acres going in, it’s hard to see how this price holds on. Chickpea dense growing areas are seeing good snow pack which will help to set up for a favourable spring. If chickpeas are going in the ground on your rotation, take a serious minute to pencil in what works for your books and give us a call with options.
The Argentine soybean crop has continued to face a well-documented drought that could result in losses of up to 10MMT of Argentine soybean production. Fortunately, countering those losses is the Brazilian soybean harvest that is predicted to provide a record-breaking crop of 153MMT. Brazil’s record crop will play a large role in North American soybeans’ export ability. Current spot prices for soybeans sit around $17.00-17.50/bu. December exports of Canadian faba beans amounted to less than 100MT, all of which were sent to the US. With Australian faba production estimates increasing and AU price decreasing, paired with an increase in UK seeded area and strong yields in the Baltic regions, Canadian fabas look to face heavy competition in exporting to Egypt for 2022/23. Fabas are seeing spot bids between $13.60/bu FOB and $14.35/bu delivered for export quality, while feed bids remain in the $10-10.50/bu FOB farm range. New crop contracts are available at $14.35/bu delivered Northern Sask on 10bu/acre with AOG.
Lentils continue to have positive gains. The Gulfood show seems to have had a positive impact on lentil markets, as all varieties have seen an increase in price. With speculation that lentil acres are going to decrease this year, buyers are offering some of the highest new crop pricing ever offered. Large green lentils old crop for a No. 2 has traded at 51 cents, with new crop bids as high 44 del with an Act of God for a 2 or better. Small green lentils old crop 47- 48 cents FOB farm for a No. 1 and new crop at 42 cents FOB farm with an Act of God, but higher offers are being looked at. Old crop medium green lentils are trading at 32-33 cents USD for No. 1 US, and new crop are trading at 30 cents USD for a No. 1 US grade. Red lentils are trading as high as 34.5 del for a No. 2 old crop. New crop is trading as high as 31.5 for a No. 2 delivered. With a 14 cent spread between red lentils and green lentils, how many producers will consider shifting into green lentils over reds? Something to consider on the red lentils is that only the big three red buyers are interested at these levels. Smaller buyers are sitting on the sidelines.
The mustard market seems somewhat stable on the new crop front as we enter March. New crop prices have slipped to around $0.64-$0.68/lb on all types with yellow quoted the highest. But these have stabilized, it seems slightly, as we reach these levels. Despite softer values, we still think this is a good sign to lock in the first 10bpa under AOG. Spot bids continue to feel the downward pressure and some buyers have been reluctant to buy right now as needs are currently met. Current spot values from those still willing to purchase are quoted in the range of $0.90- $1.00/lb on all types of mustard, but we are seeing daily price fluctuations and volatility. Yellow and Oriental have the highest spot bids. We still have seed available for most varieties with delivery to your yard, but time is starting to run on delivery.
Oats once again remain very quiet. The same story persists. Supplies are heavy and buyers are filled up for the near future. Feed oats are still trading between $3.50-$3.75 FOB farm though and we have seen some sales occur at these levels. Perhaps it’s time to ask if we should be selling into this market and not wait for milling bids. Sometimes space can be an issue with oats, so if you have storage issues, shipping over the next couple of months can be arranged on this feed bid. With oat acres expected to be down, we should be able to work through our big supply, but this is obviously going to take time. Growers may need to carry oats in to the 2023/24 season before we see any significant demand and/or upward price movement. New crop bids remain largely elusive as well, but we have seen the odd bid around $5/bu DELIVERED to plant in MB. Those in extreme SE Sask may find themselves with a decent FOB farm bid based off this value – call your merchant with location and acreage for details.
A few weeks ago, we spoke on the possible mend of Australian-Chinese relations that had potential to re-open barley trade between the two parties. As trade relation meetings began the first week of February, we watched Australia ship a reported 15 vessels of coal and several thousand tonnes of cotton to China in anticipation they would be accepted. With reports of the cotton being received at the Qingdao port in recent days, it appears that relations could be improving. Despite Australian barley competing with Canadian product, old crop feed barley continues to see little change from prior weeks and trade around $8.90/bu delivered Lethbridge, with FOB farm values in Sask circling around $7.50/bu, but pushing as high as $7.80/bu in the right location. New crop feed barley delivered Lethbridge can be signed up today at around $7.80/bu, with Sask new crop values being traded around $6.50/bu FOB farm in the past few weeks. Malt barley appears to be trading between $8.00-8.50/bu delivered in AB/SK/MB. New crop malt barley contracts are few as of today, but we hear of additional opportunities presenting themselves by the end of the week. If considering planting malt this year, be sure to reach out to your merchant so we can start to watch for buyer bids and get your acres signed up under AOG or DDC.
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.