Not a lot of change from last week in the wheat markets. Feed prices remain persistent and have been trading between $7.00 to $7.50/bu FOB farm pending farm location and freight costs. The milling CWRS market has been holding on as well with bids for 12.5% protein ranging between $7.40 to $7.60/bu for April/Aug. delivery. For growers with 13.5%+ protein product, bids sit between $7.60 and $7.80/bu delivered for April/Aug. The new crop durum market has some prolonged interest this week with price indications around $8.00-$8.50/bu FOB farm in the Southeast part of Saskatchewan. Old crop durum has been trading around $8.50/bu delivered to plant in many areas.
There have been very few positive fluctuations in the pea market over the past weeks. If anything, old crop yellow peas have softened a bit. Most of our buyers have moved their bids to $10.50/bu delivered on yellows, as waiting for cheaper new crop supplies is of more interest. New crop has still been trading at $9.00/bu picked up, however, movements are getting pushed out to early 2022. Green peas remain quiet as growers wait for $10.00/bu FOB while buyers haven’t waivered from $10.00/bu delivered. There have been a few options of delivered bids getting pushed slightly higher, but those tend to get filled quickly. Maple peas, once again, remain consistent. Old crop is trading at $10.00 – $11.00/bu picked up (variety specific for the latter) and new crop bids are $9.00 – $9.50/bu FOB. Looking overseas; Australia’s pea crop is quite large compared to last year, however we have yet to see their exports aggressively hit the market. Even if they do, it is unlikely to have a large global impact assuming China’s demand remains constant.
This week, oats are still sitting competitively priced, with delivered old crop values posting $4 – $4.50/bu. A good chunk of our milling oat bids remain set for delivery into Manitoba, therefore, the more Eastern you are, the more aggressive the bid. For old crop, movements are getting pushed out to Summertime shipments, but we can still find some quicker options, if needed, at a discount. If you have feed oats on the farm, we have bids around $3.50/bu picked up if the weight is 40lbs +. Buyers are focused on the weight of product and if there are any road bans to work around, so make sure you have this information when calling your merchant for a bid.
Canaryseed markets remain steady once again and have shown no change from last week. We are still seeing buyers post very strong new and old crop bids and believe growers should take advantage of these. Right now, $0.30/lb FOB farm, with an act of God should trade in many areas for new crop. These contracts are on 10bu/acre, so getting a bit of your production locked up at this price is a great way to hedge downside risk. Projected acres are supposed to go up, and with these high new crop prices there might be a few extra acres that get switched over. Old crop bids are still strong, but movement is getting pushed out. Bids right now are around $0.32-$0.33/lb FOB farm for May-July timeframe. If you need to empty a bin or move a few loads, an offer at a lower value might trade for quicker shipment. A reminder once again, that we still have seed available so call your merchant if you are interested.
Barley markets remain in strength this week. Although it seems to be on a bit of a rollercoaster ride for daily spot prices, the change is only a few cents up or down. Targeting $6.00/bu at the bin will likely have a good shot at trading so long as freight costs aren’t excessive. Delivery periods are pushing out to May-July but given the dollar figure offered, this is still a great option. Nothing much to speak of on the malt trade side of things but given current and previous feed barley pricing province wide, there is not much left sitting in the bins; nor should there be. New crop barley is a same story, different day, topic right now. Lock some in at $5.00/bu and roll the dice on the rest. This leaves you with insurance that some product will be moving in the Fall with a decent value and relatively low risk contract. Feed barley and malt barley seed is getting harder to find as the days grow closer to seeding. If you are on the fence, we suggest that now is the time to take the plunge. Not only is the pricing attractive right now for barley, but it makes a great rotation crop on the farm. Call a Rayglen rep today to discuss more and learn about your options whether it be new crop, old crop, or seed.
Flax prices are still holding around $23.00/bu picked up into Summer months, but the pool of buyers willing to pay those values has declined significantly due to export sales and lower supplies. There is also risk for new crop pricing as global supplies are expected to increase for the 2021 crop year. We can still offer $16.00-$16.50/bu picked up, with an act of God, but movement time frames vary. The USDA will issue their intentions of acres report next week and while flax prices in the US were slower to rally, an increase in seeded acres to the South of us is also expected. With these higher-than-average new crop prices still available, locking in the first 10-15bu/ac takes risk off the table. Analysts feel like there is an inverse in price coming sooner than later. The only factor that could support these prices is concern about dry conditions in North America, but that may not offset the larger crops in the Black Sea region.
Soybean futures price volatility appears to be narrowing this week and it’s anybody’s guess as to how long this will last. Recent support is coming from the veg oil complex. Whereby shrinking global veg oil stocks and growing demand for green energy have put veg oil futures in a state of constant climb. Brazilian harvest progress and US prospective planting reports will be increasingly important market factors over the coming weeks. Local soybean bids now hover around $16.00/bu picked up depending on location. The faba bean markets remain the same and stay 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.
The chickpea market has been fairly sideways for a couple weeks on spot and new crop values. Current bids are around $0.31-$0.32/lb picked up in the yard for #2 quality including some sizing restrictions depending on the buyer you are dealing with. We have had a few rumors of higher prices coming down the pipeline, but thus far nothing has materialized, and we still sit here waiting for markets to heat up. Export of Canadian chickpeas around the world remains at a slower pace than normal with US still the biggest buyer of our product in recent months. There still seems to be some optimism that better days are ahead for the spot market in Kabulis, so trade is light with many farmers waiting to see what happens. New crop prices show some buyer interest at $0.33/lb FOB farm on #2 product, which is not a terrible starting point to get some risk off your plate.
Large green lentils are once again seeing downside pressure as bids lose another cent this week with some buyers. Current bids are anywhere between $0.36-$0.37/lb delivered plant with buyers stating that the markets are not showing any interest in purchasing large greens at this time, nor are they showing any upside in future months. The market is also seeing pressure from the farmgate side of things as buyers receive multiple calls from producers wanting to move lentils. The spot red lentil market is holding a bit steadier and is still trading at $0.29/lb FOB farm in many areas. New crop reds are still bid between $0.27/lb and $0.2925/lb with the variance dependent on whether you want an act of God and/or picked up or delivered plant. Large green lentil new crop bids are holding strong $0.30-0.32/lb FOB farm with the latter likely to trade in most areas. Spot small green lentil bids remain stagnant at $0.33 – $0.34/lb FOB farm, while new crop trades at $0.30/$0.28 for #1/#2 product, FOB farm with AOG. Expect lentils to remain quiet until we get into seeding/early summer; we may see prices start to improve if the new crop looks unfavorable.
After an up and down week on the canola futures, today we see a jump in the nearby months, while new crop numbers are down slightly. May futures are sitting at $792/MT, which is up from last week when it was at $781/MT. July futures are at $738/MT, which is up from $734/MT at the same time last week. Some rumours have been making their way into the market, such as China cancelling purchases of Canadian canola as well as Eastern Canada importing two vessels of canola from Ukraine. These rumours come a couple of weeks after China cancelled vessels of canola from Australia. There is still bullishness in the canola market despite these rumours as tight stocks and strong crush margins hold the market up.
The mustard market remains stationary as buyers and sellers seem content at these levels, for now. Seeded acreage is still a hot topic and how demand will shape up as we enter year 2 of covid lockdowns. 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. Strong new crop prices are trading at 10 bu/ac with an act of God, and we have bids relatively similar to spot prices available for a September through July program. Last minute seed is available for mustard, and possibly delivered to your yard if you live in Saskatchewan. Call us to see if we can still get it to you at this late date.
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.