Feed wheat prices are off a bit this week due to softness in the market, freight costs, and uncertainty clouding bids. Current bid indications are around $11.75 in most areas of Sask with really not much of a premium, to being located in Southern Alberta at this time. Markets are fluid with big swings day to day, so what makes sense today might not tomorrow and vice versa. Offers can be an effective way to catch that elusive premium or a solid way to miss out on opportunities that are on the table today; a 2-edged knife if you will. Milling wheat prices offer a bit of a premium, but again the swings are big. The premium is hardly worth it on most days when you compare picked up feed values to a delivered milling price, with bids ranging from $12.50/bu to $13/bu delivered in. Durum bids are showing mostly around $16 to $16.50 at this point with the occasional premium about, and fall prices in the $14/bu or better range today. Feed bids for the fall still can be locked in without an act of God north of $10/bu which most years is a totally unheard-of price.
Old crop canary seed prices perked up a bit at the tail end of last week and continue into this week. Buyer interest sits around 48c/lb delivered in for Apr/May movement. Is this the late winter bump that producers tend to see now pushed into spring? With canary stocks on the lighter side, price support should maintain moving forward. Expectation on new crop acres remain on the flatter side with the notion that stock potential could “catch up” should we see an average yield this year. That being said, some prime planting areas are lacking moisture. It remains very early in the season so this issue may be resolved as time moves on. Historically 36 cents/lb picked up in the yard with an act of God is a fetching value, but is it enough to catch some acres?
The war continues with Russia and Ukraine, which is starting to bring more uncertainty of what crops will and can be planted. For peas, most of Ukraine’s are planted on the Eastern side of the country which is currently seeing the most turmoil. We will have to continue to watch how this will affect their planting season, and if they are able to get a crop in the ground. It seems like Russian plantings won’t be heavily affected, so we anxiously watch to see if Russia and China can come to a trade agreement, which would provide heavy competition to the Canadian market. Right now, old crop prices haven’t changed from last week, green peas are at $14.50/bu, while yellows are still quoted at $17 – 17.50/bu, both picked up based on a #2 quality. Maple peas, however, have had demand pull back quite a bit, finding a bid is getting slightly more challenging, but $16-16.50/bu FOB may still be attainable. New crop bids are seen in most areas with greens indicated at $12.00/bu FOB, and yellows at $13-14/bu FOB with an act of God; the latter for southeast Sask and delayed movement.
Barley markets appear to be tailing off a bit from previous weeks with reports that feed lots have over bought corn supplies. Despite values pulling back, it doesn’t change the fact that spot bids are still historically high, and growers may want to take a look at signing up any remaining product in the bin. Indications are now around that $8.00/bu FOB farm mark pushing into a May – July delivery period. If you have a big lot and are looking for a bit more, the best suggestion is to call in, submit a firm target and let us do the leg work for you. On the new crop feed side of things, we aren’t seeing very many posted prices, but have indication that offers of $7.00/bu FOB farm still obtains buyer interest. Not a bad starting point for 10% of expected production this year. Over to the malt side of things, it remains much the same as feed. Not many posted bids floating around, but offers are getting looked at on everything. Old crop malt likely trades in that $10.50 – $11.00/bu range depending on area and timeline of delivery. For new crop, it seems the best play in this game is to post your asking price and see if anyone snaps it up.
Spot lentil markets are a bit of a mixed bag as we near the end of the month. Reds finished last week very hit and miss around 40 cents/lb FOB farm, but are now trading as high as 41 cents/lb on farm for further out movement. Large green lentils took a different path, trading up to 60 cents/lb FOB farm last week, now 4-5 cents lower with quotes around 55-56 cents/lb FOB farm. Buyers state that last week’s increased demand for LGL has since disappeared and are uncertain if it will return. Small green lentils have stayed the course, still indicated around 52 cents/lb on farm, with the potential for a touch more on firm target. New crop opportunities have strengthened for both green and red lentils, with small reds now seeing a bit of action at 35 cents, and large greens at 42-44 cents pending location; both picked up with an act of God. New crop small green lentils are rangebound, being indicated around 40 cents FOB farm with an AOG. It looks like old crop pricing will continue to fluctuate as we head into seeding.
Nothing has changed in the oat market over the past week. Old crop oats continue to be quoted at $8.50/bu for summertime movement if you’re working with a good milling quality. If you have out of condition oats, give us a call so we can find the best option for you, as we do have many buyers looking for off spec grain. Buyers are also still looking to cover off some sales in the organic or gluten free market, so if your product fits those specs, please let us know! There are still some new crop oat contracts available, but movement is getting pushed further into 2023 every day it seems. Pricing starts at $6.50/bu delivered, still a great sale regardless of shipping window. Keep in mind the five-year average contracted value here at Rayglen is roughly $4.50/bu including this year’s pricing. Eliminate this year from the equation, and that average falls to $3.25/bu.
Mustard continues down its path of high pricing as issues in the Black Sea region continue to put uncertainty in the market. This means buyers look to secure every new crop acre and bushel left in the bin they can. New crop is very hot with record pricing taking place this week. Yellow is now being bid at $0.92/lb, brown up to $0.92/lb as well, and oriental quoted around $0.86/lb, all FOB farm with an act of God. Old crop yellow is bid around $1.90/lb; brown mustard stays strong around $2.00-2.10/lb; and oriental mustard trades up to $1.15/lb depending on if it’s Cutlass or Forge variety. These prices are quoted as FOB farm and based on a #1 quality in most locations. We have also seen firm offers hit at slightly higher values, something to keep in mind if you are looking to move your product. With supplies dwindling, spot bids remain firm. It feels like acres are now climbing as growers are finding acres to book new crop. We may have some untreated seed options left, just let us know.
Flax markets continue to see strength in old and new crop pricing. This is a direct result of the ongoing war in Ukraine. Old crop flax is trading as high as $37/bu FOB for late spring to June/July movement, while new crop is now priced up to $26/bu FOB farm with AOG. This is a remarkable price, and we are seeing fairly steady bookings. We feel the acres are not changing a lot in Saskatchewan even with this strong pricing, but the world flax markets will be interesting to watch as we go forward. The same question persists: If Ukraine and Russia are taken out of the picture and the Black Sea shipping is not an option, then where does the supply come from? We have some seed available, talk to your merchant for details.
New crop chickpeas are still seeing a bit of love this week, with bids at or near $0.46/lb FOB farm with an AOG for Sept-Oct movement. Some business has been done at this level, but in general new crop conversations are full of uncertainty given seeding conditions. Old crop bids are almost at par with new crop, currently sitting at $0.47 FOB farm with movement April-June. Potential exists to see slightly higher values on firm target. It is expected that we will see a decline in acres this year, which could mean better values long term, but today, all is calm in the chickpea world. Feed/Sample chickpeas remain steady at $0.30/lb FOB farm and potential uptick depending on down grading factors. Call for more information on the spreads for damage and green count.
Soybean futures profited from an uptick in the energy markets. This was derived from higher crude oil prices due to shaky peace talks between Russia and Ukraine. Tight supply due to crop shortfalls in South America also continues to help support bullish price movement. Local bids are location dependent and range from $17.75 -$18.50/bu FOB farm. Due to potentially strong returns for many crops, dry bean planted acres are anticipated to decrease year over year. Carryover inventories are moderate, and if coupled with reduced planted acres, it could set up stronger price prospects for new crop. New crop dry bean prices are available and have edged higher in recent weeks. Niche market new crop specialty dry beans bids are between 50¢-60¢/lb delivered. New crop faba bids showing up around $10.00/bu FOB farm for a #2. Old crop domestic feed market is propping up feed faba bids in that $13/bu FOB farm, and when old crop #2 demand periodically occurs, it is often near $15/bu FOB farm.
Canola prices have been in a general uptrend for a number of months. Recently we may be running into profit-taking resistance. Energy and global vegoil markets have been supportive for canola, which has also contributed to its unpredictability. No commodity seems immune to the daily influence of news updates from Russia/Ukraine conflict and canola is no exception. Markets continue to build in “risk premiums” as long as the conflicts carries on. Old crop canola bids are in the range of $24.75 to $25.00/bu picked up, and new crop bids are in the range of $21.00 to $21.50 picked up.
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.