Chickpea markets seem to have a bit of steam this week. A slight uptick in value by a penny or two depending on the area, as well as more buyers seem to be showing interest. The buying focus appears to be for niche markets as opposed to mass export so the product being bought is small in quantity, specific for sizing and incremental as the trade actually happens. This could still spell opportunity though so dig up those old grade and sizing sheets and get quality pics with a ruler in the photo from near and far. This could mean the difference in a quick trade or a missed opportunity. Old crop large chickpeas #2 or better max 10% 7mm trading around $0.24-$0.26/lb delivered facility. New crop has had little to no movement from last week with bids ranging from $0.21-$0.23/lb delivered with an AOG. Feed/sample chickpeas hover at $0.10/lb delivered plant.
There are many factors affecting the market, however, the one that may entice more demand in peas is the Canadian dollar dropping. We had bids move slightly higher on yellow peas and targets at $7.50/bu delivered getting interest. Green peas haven’t seen much of a change yet with pricing at $10.50/bu FOB. There has also been word that India may start “hoarding” pulses, but as of now we haven’t seen much of a rally in pricing. New crop bids haven’t changed since last week, $8.75/bu delivered on greens and $6.50/bu delivered on yellows. If you still have some peas in the bin, especially yellows, trying out a target is a good option as hopefully we will see bids continue to firm slightly up. Maple pea markets remain quiet with China being the main buyer and the market currently still over stocked. Old crop pricing is at $8 – 8.50/bu FOB.
Canary pricing has pulled back a tad this week sitting around 26-27c/lb picked up on the farm with movement ranging from April to June. It isn’t uncommon to see this commodities old crop pricing stutter, as the expectation is for it to turn around again in another month to six weeks time for the next round of buying. An important factor to consider though is shipment and how will this be affected when that buying time comes. Does it shorten that buying window which inversely affects product pricing uptick? If only I could predict the future. On new crop canary, prices continue to hover around 21c/lb. Chances are we will continue to see the low 20s pricing moving forward unless there is any concern with the 2020 crop.
As most countries self-isolate, we may see panic buying of food around the world, which could start value inflation in our markets and dollar deflation. Whatever happens, we are glad to see feed markets push through as wheat bids increase slightly this week with most areas able to catch $5.00/bu FOB the farm. Better freight areas are seeing bids in the $5.25/bu range (usually closer you get to feed lot alley, but not always the case). For CWRS milling wheat in Saskatchewan with a minimum of 12.5% protein trading is being done around $6.50/bu delivered. With the Canadian dollar a bit lower right now, it has helped with keeping corn in the states. In the southeast part of the province, you should be able to get over $8.00/bu FOB on milling durum.
The oats market is still pretty quiet out there on old and new crop. Most buyers are pretty well bought up for the spot market, so bids are tougher to track down, but there is still the occasional opportunity into the Manitoba area at the mid-to-high $3 range for summer movement. If you are still sitting on unpriced milling quality, we can work on a bid FOB farm. Feed markets are weak for spot prices with bids around $2-2.30/bu on yard for those looking to sell product that is light or has other grains or wild oats. Oats acres are again expected to be up this year, though with spot prices dying off in recent weeks, likely some of the fervor towards planting more oats will have trailed off. Therefore, the increased acres may not be as heavy as some predictions.
Flax markets have had no big changes this week. We are seeing milling quality picked up at $14.00/bu into the summer months. Regular #1 quality is $13.00/bu for April/May FOB farm. Yellow flax is hovering at $16.00/bu in certain cases and new crop bids are available with an act of God on both brown and yellow. There have been some shipping interruptions as of late, but our tight Canadian supplies have prevented bids form dropping. The Black Sea region has also continued to export at a record pace since the 2019 harvest. The US demand has seen some improvements, but not enough to turn the market around. The flax market will likely continue in this holding pattern of prices until we see 2020 harvest numbers.
Canola futures markets have continued a slow climb this week. At time of writing, May futures were up $11/MT from the same time last week and are sitting at $467/MT. Much of the strength we have been seeing in our canola markets has come from piggybacking off soyoil and Malaysian palm oil. This strength has been subdued recently, with the CDN $ gaining approximately a half cent today. As usual, we recommend shopping around local basis level when looking to sell to find the best deal in your area.
Lentil markets are heating up today and buyers seem to be looking for all varieties and colors. What started out as somber mood a week ago on commodities has sure changed in a hurry. Red lentils are trading at 23 cents FOB farm basis #2, X3 sits between 19-20 cents and #3 around 13 cents. Large green lentils #1/X2 are being bid at 24.5-25 cents FOB farm, #2 at 23 cents, X3 at 20 cents and #3’s at 13 cents. Small green #1 quality continues to trade at 20 cents on #1 and 19 for a #2. New crop prices for reds are trading 19.5-20 cents with an Act of God, large greens are trading at 23 for #1 and 21 for a number #2 with Act of God. New crop small greens are trading at the same values as old crop. At this point it is anyone’s guess where these markets will end up but taking advantage of rising markets is never a bad thing.
Barley markets are also responding this week with price starting to strengthen again. Seeing bids on old and new crop at $4.10/bu west side Sask and Eastern AB. We suspect pricing is likely seeing some strength due to a weaker dollar. New crop barley contracts are still limited, but as things seem to strength maybe more buyers come to the table for next year. Malt barley at this time is still quiet as buyers are not looking for much. If you are heading out into the field to get finish off the remaining harvest, make sure to get a test weight and moisture before trying to market as buyers will be concerned with the springtime quality.
In the last couple of days, broader markets have stabilized slightly. Massive aid packages are being prepared. We are seeing a Canadian dollar around 69 cents US, and we are seeing slight bumps in pricing on some commodities. Mustard, though, is slow to react and so far, the story remains the same. Pricing similar to last week. New crop is booking at solid levels. Yellow mustard remains at 38 cents for spot and new crop. Brown mustard is still at 27 cents FOB for spot and as high as 29 cents for new crop. This may be very hard to get though today. Oriental spot sits at 25 cents for Forge and 24 to 25 cents for Cutlass. New crop is as high as 28 cents FOB for Forge or Vulcan and 26 cents now for Cutlass. 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. We have certified seed available of all types, and we are focused on a fair and affordable value delivered to your yard.
Soybeans futures posting gains. A Chinese soybean shortage and bottlenecks in the South American logistics chain underpinned price strength in the soy complex this morning. Soybean cash bids in the range of $10.00 picked up on farm location dependent. Faba export demand on hold and feed bids still hanging on near $6 picked up. New crop dry bean production contracts are getting close to sold out…still a few acres available. Call your Rayglen merchant for more info.
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