Mustard markets have been steady over the last week other than a bit of disruption with the currency volatility. Reports of low ending stocks is a potential for upswing in 2^nd-3^rd quarter but keeping in mind that is predominantly made up of Oriental and Brown with Yellow being the variety in low supply. Globally the Ukraine and Russian export numbers have been steady since 2019 harvest. Where those markets historically have higher export seasons the flip to constant shipments has resulted in limited openings for Canadian markets to squeeze in shipments. The time for final decision making is near and with that values across the board have not changed from last week. We encourage growers to set targets to show buyers you are a serious seller. We still have open acres for an IP Brown mustard program at a premium to commercial markets as well certified seed is at your fingertips through us and we are focused on a fair and affordable value delivered to your yard.

There is some uncertainty in the global lentil markets, mostly linked to the coronavirus and how it could affect demand and movement of product. That being said, lentils are still getting shipped out, drawing down some ending stocks. The trade glitches that the market has experienced begun before the coronavirus and rail blockades. Australian lentil exports have been moving at a strong pace so far. Red lentil prices in India continue to sag and green lentils prices have had a sharper drop off in pricing.  Canadian prices are likely to stay sideways unless the Indian market rebounds. Spot prices on reds have been 23 cents/lb delivered over the last few weeks, #2 large greens around 21-22 cents/lb picked up, while small greens have remained sideways at 20 cents/lb for #1’s. We also have new crop programs available. India is expected to harvest its third largest pulse crop and with possible import restrictions and import duties placed on pulses, signing up some acres is not a bad play.

The markets have been running wild this past week, but the feed barley market seems to be removed from the chaos. Feed prices have come down a bit, but this is more affected by feedlot demand as per reports. Corn is going to be moving in at lower prices and we are going to have spring thrashed product coming into the market right away, which is affecting bids. Getting your feed barley contracted for the movement you need may be beneficial before spring thrashed product is being marketed. Current feed barley bids are $3.50 – 4/bu FOB with stronger bids in South west Sask. We do have some quicker movement options, but some buyers have already pushed back to June – July movements.

The state of our financial markets is weighing on canola values. We saw some gains on Tuesday in canola, but this morning canola was trading $1 – $2/mt lower, as per reports. As we see soyoil futures continue to dip, the canola values will also struggle to have any movement upward. For the short-term, we will continue to wait to find the bottom due this market instability. However, there may be some upside potential in the longer term, but with China holding value gains at bay due to their going issues with Canadian canola. Current canola values have been trading around $460/mt.

As world markets struggle due to the unknown impacts of Coronavirus, we have seen huge loses in the global economy. Ag commodities are among those that are affected, but surprisingly, pea markets are relatively stable for now. Yellow peas are still trading around $7/bu delivered and green peas have been trading around $11/bu delivered, mostly unchanged over the last few weeks.  The maple pea market has been trading around $8.50/bu delivered and could arguably be seen as the most affected, although bids haven’t fluctuated to terribly far of this year’s average. New crop yellow pea bids have been quiet, but indications remain around $6.50/bu delivered, while green pea new crop bids still trade between $8.75 to $9.00/bu delivered. This week we released a very limited new crop marrowfat pea program. Please call your Rayglen merchant for details.

The chickpea market remains a bit of an enigma with the occasional deal still in being priced in the mid-twenties range on good quality large Kabulis, with many other bids only scratching a low twenties price. Reports on the Indian crop are saying their chickpeas look good as a start for harvest, but they are grown more to the north in regions not as effected by the late rains. Feed quality product can be moved out still to clear bin space, but prices are off from the norms we would expect from the “dog food market” and bids remain in the 10-12 cent/lb range.  Expectations are that our chickpea acres will slide a bit from last year as disease issues leave a sour taste in the mouths of growers and marketing prospects are not overly enticing, with contracting levels in the low to mid-twenties.

Flax market prices remain stable, but sales are a little on the quiet side.  The shipping window for old crop sold today is April/May/June movement. Brown Flax is trading between $12.00-$13.50 for #1 quality and around $14.00/bu for milling quality.  New crop flax has been trading around the $12.50/bu FOB mark or $13.00/bu delivered; trading at the same level as last year at this time; Since January, exports have slipped from last year’s pace with China and Europe seeing the biggest decrease and the US about 14% shy of what they imported last year. The greatest cause for prices remaining firm at this point is the uncertainty of what is left out in the field and what the quality will be. Many buyers are uncertain on flax for next year as there are many conflicting thoughts on acres being seeding and what the export market will do if Coronavirus continues to stall out overseas trading.   

Despite heavy volatility in financial and futures markets over the past week, milling red spring wheat prices have felt only a pinch. Feed wheat and durum prices have held relatively flat throughout all the negativity in the market as well, with bids as high as $5/bu FOB farm on the west side of Saskatchewan, heading into Alberta. Most movement is pushed out to May, but some quick options are available if you can load primary weights. Milling durum has traded between $7.75-$8/bu FOB farm in southeast Saskatchewan with milling HRS wheat dropping down to $6.07-$6.21/bu delivered to plant for June-August movement.

Soybeans have not been immune to the global market woes over the past week. Thursday last week was the beginning of the slide for soybeans which ended in a futures gap down in the subsequent days. Global fundamentals reference the Brazil soybean harvest being well underway. As well, Argentinian farmers continue to protest an imposed export tax. Strikes have fizzled Argentinian exports over the past week. The USDA continues to increase the South American soybean production forecast. Local soybean bids are trading in the range of $9.70/bu picked up on farm. Faba market has gone quiet with many buyers pulling back and reassessing the market forward. #2 export bids are getting more difficult to find however feed bids still hover near $6/bu picked up. Attractive new crop dry bean production contracts are available but have limited acres available. Call your Rayglen merchant for more info.

The canary seed market is sounding a bit like a broken record on old crop. For the last month or so pricing values have hovered around that 28-29 c/lb with movement holding steady for Mar – May timeframe. We have seen some firm new crop bids quietly pop up at 21-22c/lb range delivered to plant. How attractive this price is to the producers remains to be seen. We may see a good chunk of product planted this year with SK Crop Insurance coverage at 25c/lb and the hopes of elevated pricing to come.

The oat market has been shaken by current events in world markets. Currently we still have some old crop bids delivered into Manitoba mills at the $3.60 to $3.80 range  Obviously, freight costs on a light product like oats make this number look not so attractive as you work it back into Central SK, but areas out East can still see the benefit.  Call us for FOB bids catered to your farm. Slight interest in feed oats is still around at the $1.80 to $2/bu range but the feeders are not that aggressive during these tense times in the market. Oats acres are still projected to increase a bit this year. This is no surprise, but prices going forward should be monitored.

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.