|We have seen some small opportunities come up in the milling spring wheat market. Bids are available delivered into select locations between $6.50-$6.70/bu for Jun/July movement. This is based on #1 CWRS grading and minimum 13.5% protein. New crop milling wheat prices have been hovering closer to the $6/bu mark delivered into plants around the provinces. Feed wheat prices have remained strong through the past week with prices ranging from $5.50-$5.90/bu picked up in the yard. Most of the wheat seems to be heading west so your strongest prices will be on the west side of Saskatchewan and into Alberta.
| Flax prices are much the same this week, which is a good thing, as we are still seeing $14.00/bu picked up on old crop and hearing rumors of higher bids available (this is where firm grower offers come into play). New crop still trades up to $12.50/bu picked up with an act of God. Inventories at terminals have been increasing with more to come in. The US market remains soft which puts a halt on Canadian flax moving south for the time being. With the increase of flax acres in both the US and Canada, signing some up is worth some thought, as it should turn the market lower as long as growing conditions remain normal. The old crop bids will run out of steam once the upcoming sales are filled. There are also markets for yellow and off-grade flax available. Bids vary on location and quality.
|Green lentils of all varieties seem to be getting a little more love this week. We have seen Richleas out of the US trade for 13 cents USD FOB farm, Canadian #2 large greens up to 20 cents and Estons as high as 17 cents FOB farm. It has been a few weeks since we’ve have had buyers this interested in purchasing green lentils. Now, obviously, prices have seen a slight increase, but nothing earth shattering, and we suspect its due to rumors that India’s pigeon pea crop may not be as good or as large as earlier perceived. Still uncertain if this a speculation buy or if actual trades are taking place. If this is speculation, price will likely disappear again as buyers wait to trade their bought product. If there is a real shortage, price may get stronger but won’t go crazy as the trade knows new crop is right around the corner. Taking any advantage of any market spike is likely not a bad idea as prices still have a lot of uncertainty in front of them and quality will become an issue once new crop comes off in the fall.
| Special crops have heated up a little this week, but unfortunately it is not being reflected in chickpea markets, as one would have liked. Old crop values remain at $0.22-$0.25/lb range depending on location or delivery and new crop values come in at $0.23-0.24/lb FOB farm with an AOG. It is hard to say when this market will see some significant traction as acre intentions did not reduce as heavily as initially estimated (expected decrease of 24% in March from early reports of 58% in Jan). If weather continues to be dry it could support values, but it is hard to ignore the supply that will be available come harvest. Feed values also remain steady ranging from $0.11-$0.14/lb location dependent. Desi chickpeas are on the radar, but another week goes by where the commercial market is not ready to put a value on new crop acres. If production contracts are a part of your plan, give us a call to discuss targets.
|Not much to report on the mustard front. Exports remain steady to slightly stronger, but that has not transferred to increased pricing. Its apparent that stocks are ample, and prices are staying relatively flat for now. Seeding looks to be progressing normally compared to the 5-year average. Spot contracts are available picked up on your farm at $0.35/lb on yellow, $0.30/lb on brown, and $0.22/lb on oriental based on #1 grades. For new crop, full crop year movement contracts are available at $0.35/lb on yellow, $0.28/lb on brown, and $0.25-$0.26/lb on oriental depending on variety. If you have brown acres, let us know as some December movement contracts have triggered this week at $0.28. If you do run into issues or are looking for some last-minute seed, give us a call and we will try to help you get some certified seed. We might be able to make something work.
| Seeding is progressing well with favorable weather conditions for most producers; we can estimate at least 50% of the pea crop is now in the ground. With seeding moving along, we are in the seasonal low of pea pricing. The future is providing a lot of uncertainty with both Chinese and Indian markets unstable. There is the expectation that China’s imports will be reduced, but hopefully offset by India coming back to the market (yet to be seen). Current pricing on yellow peas is sitting stronger than expected considering the uncertainty, with bids at $6.80/bu delivered. As for green peas and maples we continue to follow the seasonal lull. Top green pea bids come in at $12.00/bu delivered and maple peas at $9.00/bu FOB. New crop pricing hasn’t seen any change since last week, yellows are at $6.00/bu FOB, green peas at $8.00/bu FOB and maple peas at $9.00/bu FOB.
|Starting to see feed barley trend backwards, with only a few buyers still
kicking around at last week’s prices. With the large acreage increase this
year, the demand for old crop feed barley from feedlots is starting to dwindle as new crop will be off in a few months. Corn prices are down this week as well, providing a cheaper alternative again. New crop barley is around $3.60/bu FOB farm for movement by end of December, and with an act of god. New crop malt bids are getting hard to find but, posting an offer may attract a buyer to take it. Old crop bids are between $4.20-4.65/bu FOB farm, with the exception that the further west you go bids get better. Movement is posted as May-June, and after that bids drop off again, so this might a good time to move product if you need the bin space for this year’s crop.
|We’ve seen some renewed interest in the oat market today and over the past week. Buyers are still looking for product and willing to pay a premium to get it. If you’re a producer with some milling oats in Manitoba, South Eastern Saskatchewan or the northern states you’re likely looking at $3.25/bu picked up and in some cases higher. Of course, bids are based on location so give your Rayglen agent a call. On the feed side of things, we’ve seen some nice spot pricing pop up in that Moose Jaw area at $2.80/bu FOB farm. Other areas in Sask may capture similar values and offers are likely the best route to hit that high. For those in less desirable freight areas, look to see the feed prices hover in that $2.25 – $2.50/bu picked up. New crop pricing remains steady at $3 – $3.15/bu milling quality delivered to plant.
|Canola markets leveled off Wednesday after a strong push up Tuesday riding on the strength of soybeans. We would love to say that the canola market was bolstered of its own accord, but other than drier conditions lingering around the province, with some reprieve today in that respect, there is no real bullish news to push prices. Basis levels from company to company seem to have the largest effect on price these days, with talk of 10 under to 55 under depending on movement window. Best to look around on options to make sure you are capturing the best opportunity on the day when you move to sell. As always keep an eye on market rallies, like Tuesday/Wednesday morning, as this is the best chance to move something as summer comes up.
| Things seem to be moving smoothly regarding canaryseed planting. Recent reports show that as of early last week, 12% of the canary in Saskatchewan has been planted. This compared to the 5-year average of 9%. The only down side is that most across the prairies are looking to the skies for some moisture to fall with little to no avail to bolster crop prospects. The low moisture levels are being exasperated with these warm, dry, windy days. This is especially the case for those in west central SK. Pricing seems to be holding steady this last bit. Look to see old crop prices around 22-23 c/lb FOB farm with new crop prices remaining at 20 c/lb FOB farm with an act of God.
|Despite rocky relationships between US and China and some of the lowest board values in months, we might see an increase in Soybean acres. Why? Wet conditions and a slow start in the US, when considering length of the growing cycles, have producers inclined to reduce corn acres and therefore increase soybean acres. Domestic soybean bids continue at the $9.00-$9.50/bu FOB farm for both old and new crop. Faba beans are being held up by the Egyptian and US markets again this month with some support from the Middle East. Thus far, year to date exports are 27,500MTS vs 20,900MTS last year. While Canada has become a more established supplier of the faba bean market, it is expected that production will increase globally in turn keeping our Canadian markets relatively flat. Old crop #2 faba bids are steady at $11/bu FOB farm for #2 CGC quality and new crop remains at $7.50/bu FOB farm with an AOG. Keep in mind, there have been unreported trades at higher levels based on targets.
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.