If you are currently sitting with barley in the bin and reading this commentary, now is the time to sell. Although the price for old crop feed barley has not fluctuated much in the past couple weeks, we have seen some buyers hint at prices softening. Values are area dependant, but you are looking at anywhere from $5.70 – $6.20/bu at the bin for feed. With seeding and harvest coming right around the corner the demand for old crop barley at these values may lessen off in the upcoming days. Reports are being shown that the expected seeded acres of barley, whether it be malt or feed, are going to be up this year. As they should be, given the fact that you can lock in roughly $5.00/bu picked up on feed for new crop, making it one of the top returns on investment crops this year. A great starting point is to lock in even 25% of what you might be expecting to produce this year. The malt side of prices is rather quiet, but there is suspicion that lots are trying to sit back and see how the crop year is going to pan out. We all know how the malt barley game is and it is either malt or feed, but given pricing on feed barley today, that’s a game you can afford to play and win.
New crop is getting closer, and this warm weather is sure making us feel like Spring has sprung. With that, we had a few buyers pull back their yellow pea bids this week to $10.00 – $10.50/bu picked up. Supplies are still quite low, but buyers are starting to feel like they can wait until new crop comes off at cheaper values. If you have any yellow peas left in the bin, we recommend moving into the market at these still historically high values. New crop is still trading at $9.00/bu picked up with act of God, but some buyers have pushed their movement windows out. This is a good level to get 10 – 20 bushels on the books. Green peas have bids at $9.00 – $9.50/bu picked up with demand very quiet. Farmers are targeting $10.00/bu, however, there seems to be no buyer interest at this level. New crop greens are also at $9.00/bu picked up. Maple pea bids have increased slightly to $10.00 – $11.00/bu picked up (variety specific for the latter), with new crop values at $9.00 – $9.50/bu picked up.
Old crop flax is not getting as much attention as it was a month ago. Prices still range from $21.00-$23.00/bu picked up, however the pool of buyers at those values is getting smaller and we are starting to see some pushback at these levels. The highest bids are quoted for July shipment. New crop is holding at $16.50/bu FOB with act of God with timeframe for movement varying from buyer to buyer. As mentioned before, these are historically high prices and leaving flax in the bins unpriced at this point or not signing up new crop at 10bu/acre, leaves risk on the table. The feeling of this market is that seeing an increase in prices is just not there. There are several factors to consider such as an increase in flax acres along with overseas product still making its way into the market. If you are still looking for seed, call the office as supplies are running low.
Chickpea markets are sitting on the edge of their seats to see if a new tender will be awarded and if so, to whom it will go to. All things considered; it would translate to a slight bump in the value for the nearby to shake out just enough to cover the required tonnage. We do not expect to see a full market rally. While statistics rumor a decrease of 12% in chickpea acres in Canada, the US market chatter could indicate otherwise. Conversations with growers about the ever-changing rotation have chickpeas back in the mix. It is believed that pea prices have been strong enough that growers expect a lot more acres than usual, in turn reducing chickpea acres and creating a potential uptick. This is all speculation but at this point, everything is worth mentioning. If you are one of the growers that wants to consider chickpeas and are looking for seed, give us a call and we will get you set up!
In the last week soybean futures appear to be on a slight downward trajectory, albeit still hovering in historically lofty territory. Recent market pressure is being attributed to Brazilian harvest progress and institutional profit taking. Local soybean bids now hover around $16.00/bu picked up depending on location. The faba bean market remains the same and stays largely focused on domestic feed demand. Australia is back online with faba production and is dominating Egyptian imports. Feed faba bids are in the range of $8.00/bu FOB farm, location dependent. Dry bean market prices remain well supported coupled with robust export numbers. New crop dry bean contracts are available at attractive price levels. Contact Rayglen to book your acres.
Wheat markets continue to shine this week with prices not changing much from last. Feed bids remain strong trading between $7.00 to $7.75/bu FOB depending on location and freight. The milling CWRS market has been very stable as well with bids for 12.5% protein ranging between $7.80 to $7.90/bu for April/May delivery. For 13.5% protein product, prices are range between $8.05 to $8.10/bu delivered for April/May. New crop durum has some renewed interest this week with indications of $8.00-$8.50/bu FOB farm in the Southeast part of Saskatchewan. Durum that is in the bin has been trading around $8.50 to $9.00/bu delivered to plant in quite a few areas.
The mustard market has been running a little sideways this past week as spot bids remain at $0.38-$0.39/lb on #1 brown mustard, $0.41-$0.42/lb on yellow and $0.32-$0.34/lb on oriental with variety being a factor on the price. Oriental still carries the premium on Forge type over Cutlass from buyers at this time. All spot bids are being quote as FOB farm for a May/June type window, although offers may shorten that up. Stocks have been tight this year but at the same time demand has not been particularly strong due to current circumstances (Covid), so prices have hummed along pretty much sideways for most of the year. This is primarily seen in yellow, with a little strength on Oriental and Brown. If you are looking for new crop prices to take a bit of risk of your plate on 10 bu/ac, we have bids relatively similar to spot prices available for a September through July program. If those don’t float your boat, let us know what does and we can show it around to buyers to see who might match your terms.
Canola futures saw an increase at the end of last week, but most of those gains have been erased since Monday. May futures are at $781/MT, up just slightly from the $777/MT we were seeing at the same time last week. July futures are at $734/MT, which is about same amount we saw at this time last week. Weakness in oil markets started a small decline in some of the nearby futures but spec fund sales seem to be driving the biggest losses. Tight supplies in the canola market means we should continue to see strong prices for the time being. The November futures held onto their gains a bit better and are at $628.80/MT, up from $617/MT one week ago.
New crop canaryseed jumped last week, but spot contracts continue to stay relatively unchanged, except for movement timelines. Spot bids are now at $0.32-$0.33/lb FOB farm, with an April-June delivery window. Currently, it is very difficult to find quick movement on spot canaryseed, but you may have some luck on a firm offer below that $0.32 mark. If you have old crop in the bin and want it out before Summer, now is your chance to sign it up. New crop contracts jumped to $0.30/lb FOB farm late last week with a Sept.-Oct. movement timeline, including act of God. With reports suggesting acres going up from last year, taking some risk of the table might be a good play at these very attractive and profitable values. Hope for strong yields and anything over your contracted 10bu/acre you can play the market with. If you are looking for seed, we still have a good supply, so talk with your merchant for more details.
We sure produced some oats this year! With about 4.6mmt harvested, this is the second largest crop produced since 2007/2008 crop year. That being said, demand has been strong and as such, our stocks could grind down to roughly 315K MT, making things a bit tight. Right now, prices continue to stay strong with $4.00-$4.25/bu picked up on the farm for milling quality available, location dependent. New crop pricing also looks attractive with high $3’s on last quarter and $4.00+/bu into the new year and onwards. On the feed side, buyers are looking for dry heavy product so knowing your weight is important as bids can pencil out around that $3.50/bu range.
Looking at the lentil market this week, reds remained stable while large greens slipped another cent. Old crop reds continue to trade in the $0.30/lb range with some buyers biding FOB farm for Summertime movement, pending location. New crop ranges from $0.28/lb FOB up to $0.295 delivered with an act of God. Large greens are now trading at $0.37/lb delivered for Summertime movement with most buyers. Large greens seem to be at a stalemate with buyers unexcited to purchase while sellers wait for one last spike in the market. The green lentil market could be heading for a major correction in price if this year’s carry out is larger than expected and new crop production remains similar to last year. Supply will be more than enough to provide world needs next year. Small greens remain stable again this week with most buyers wanting to purchase at $0.35/lb delivered for old and $0.30/$0.28 for a #1/#2 quality new crop. In the last couple of weeks, we have had a few calls about French green lentils, so if you still have some in the bins, give us a call and we will find them a home.
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.