Pea markets remain quiet for another week and although we see buyers posting bids, there doesn’t seem to be much of a push to actually purchase. That said, there are very few pulling up a seat to the table on the sell side of the equation, so for now markets maintain tone, happy to trickle in bits and pieces when they can. Old crop yellow peas continue to see a widespread in value indication from as low as $9.50 to possibly $11.00/bu FOB farm in the right location in some specialty markets. New crop yellow bids sit in that $9.50 – $10.00/bu FOB farm range including an act of God. Move over to green peas, which continue to hold a premium over yellows, and you’ll see posted bids generally around $13.00 – $13.50/bu FOB farm for a #2 or better, but there may still be some opportunity to capture values closer to $14.00/bu in the right area. New crop remains unchanged week over week, still hovering in that $12.00 – $12.50/bu FOB farm range with act of God. Maple pea demand seems to have lightened up a touch over the past couple of weeks, but growers can still trade certain varieties at $16.00/bu FOB farm. New crop maples bids are quiet, but we suggest growers target in the $14/bu range with AOG to get something on the books. If you have a sell price in mind on any type of pea, old or new crop, posting something on firm offer is highly suggested. A final thought: as we inch closer to 2023 crop, consider selling higher priced old crop now before the anticipation of spot bids converging with production bids rings true.
The canary market remains in a fairly quiet mode recently, with no big shake ups in pricing as spot bids maintain around 37 to possibly 38 cents/lb picked up on farm for early summer movement. New crop prices are still hovering around 34 to 35 cents/lb of late, and buyers do offer an act of God on the first 10 bushels in case of hail, drought, or other calamity that is out of your control as a farmer. As mentioned in previous reports, the seeded acreage looks slightly up, the carryover is not terribly tight and so far, growing conditions seem to have an “okay” start, generally. Overseas sales to Europe are said to be ramping up a bit, but that is expected to cover them off for some time and the market often quiets down after, so time will tell if a new opportunity pops up to pick up the slack. As we sit right now, prices don’t look to stir up too much unless we see the weather market kick in the door to make things uncomfortable.
Oat markets move through another week unchanged and information wires have suggested growers open the bins and be 100% sold on old crop. From a feed perspective, oats are being used to extend rations at feedlots due to the high price of barley. If barley values see a dip, that ratio will very likely change, reducing oat consumption further. Milling markets are full up on oats and show little interest in buying. Spot feed oats value out of central Saskatchewan are being bid at $3.50/bu FOB farm and delivered Lethbridge, AB markets are coming in at $4.50/bu. New crop is a tough read as buyers are hesitant to purchase both feed and milling quality product. If marketing either of those is of interest, give us a call and we can work a value specific to your area.
Chickpea markets see a bit of interest this week from buyers. The values are relatively unchanged, but it seems there is deeper interest in sellers showing buyers offers to work on. Old crop #2 large kabuli’s values are being bid around $0.54-.55/lb FOB farm for June – July movement. New crop is still an area of grey as seeding has started in most chickpea growing areas. Weather conditions are always a factor for this finicky crop and cooler, wetter parts of SK are surrounded with questions of what will be produced. While acres are expected to be up, if weather does not cooperate, we could see strong numbers coming into the next harvest year as global markets look at quality and quantity out of Canada. Good quality #2 large kabuli new crop values maintain strength at $0.47 – $0.48/lb FOB farm with an AOG. Feed and sample markets are always on the buyers’ list of needs for chickpeas and offers are the best way to get the most from those markets.
Flax prices are a little softer this week with indications in the $14.00/bu range picked up for summer months. The lack of sellers combined with little interest from the export side, has had prices steady. Planted acres for 2023 in Canada, the US, and the Black Sea region are expected to be reduced. This could provide support for the market, but there will still be carry-over of old crop that has to move through the channels before any pricing affects will be known. New crop bids are not deep, but they are also indicated around $14.00/bu picked up. If flax is something you want moved, call your Rayglen merchant for options.
Wheat markets had a small rally over the last week with indications on #1 HRS at $11.30/bu delivered for July/ August, while soft white wheat for May is showing $11.50/bu delivered. The lackluster U.S. HRW crop has also helped support the price rally. Yield predictions will be modified July – August, during the critical weather months, but for now, predictions of an 8% increase in wheat acres along with a slightly higher yield than the last 5 years, could means sideways pricing. Durum prices continue to slide as the markets are watching how the larger Italy crop fairs out. Weather will be an important factor as to how these markets play out. Durum prices for the next 3 months are showing higher for May at around $11.50/bu delivered while new crop indicates a buck less.
Soybean futures took their lead from corn and followed lower. US planting pace is progressing strongly, and Brazil’s bin-buster still hangs over the market. Soon the market will turn its focus to weather and crop progress, as for now planting pace rules the day for spring planted crops. Local bids are still holding up quite well at $17.50-$18.00/bu FOB farm location dependent. Dry bean market remains markedly unchanged. Canadian dry bean bids remain supported predicated on decent North American destination export business. Mexican dry bean production is still anticipated to see a year-over-year reduction. Faba acres will surrender to other competitive crop choices across the Candan Prairies this spring. Feed quality fabas continue to be supported by pet food values. Local bids with export quality #2 faba bids being in the range of $13.50-$14.00/bu FOB farm and feed quality values are near $10.00-$10.50/bu FOB farm location dependent.
Lentils are a mixed bag of pricing this week. Most local buyers have dropped their old crop red bids by a cent or two, while holding their new crop bids for now. Old crop sales seem to keep trickling in, therefore putting some downward pressure on this market as the 2022/23 market comes to a close. New crop prices seem to be stable, but if sales continue, expect this market to follow suit. Old crop reds are trading at 35-36 cents/lb FOB farm and new crop at 33 cents/lb FOB farm with act of God. Large green lentils tell a similar story where old crop is quiet, but new crop has seen trades as high as 50 cents FOB farm on firm offer. This may indicate buyers are still looking to cover off some fall delivery contracts. Small greens lentils show new crop holding steady at 45 cents/lb FOB farm and old crop 48 to 49 cents/lb. We have buyers showing interest in purchasing old crop beluga lentils this week around 65 cents FOB farm. Here is some interesting market data: spot contract pricing for May through mid-July seems to be on par or under the value of the new crop for that same time period. Very rarely do they supersede the new contract value. So, the assumption is if you’re hoping to see old red lentil strength, we will need to strength in new crop pricing as well.
The barley market continues to hold pace, which is welcomed news as most other crops seem to be diving lower. Bids are ranging from $7.25-$8/bu picked up on farm depending on farm location with movement May – July. Will prices pull back? Export value to China has dropped making feedlot alley king of the cash bid. New crop barley maintains pricing, for now, at $6-$6.50/bu for fall movement in SK and up to $7.75/bu FOB in AB. Corn is poking its nose in with some competitive values for Dec shipping, definitely something to keep an eye on moving forward, but for now, barley maintains its ho-hum attitude, just chugging along.
Mustard markets continue to feel the pressure generally, although there is some need for spot yellow at strong values. The talk around mustard remains the same: acres will be over 600 thousand and seeding conditions have been good so far in both Alberta and Saskatchewan. Spot yellow mustard would still trade at 82 cents FOB farm, which is remarkable as buyers are filling some gaps before new crop. Brown might trade above $0.70/lb, and oriental could trade similar, depending on variety. It is critical to talk to your merchant about a firm offer on spot mustard. Buyers might be willing to step up for a load or two on any color in the right area. New crop bids with an AOG on 10bpa and FOB farm are still available as well, but values are softer and subject to change quickly, so, please talk to your merchant for a firm bid. For reference: yellow might have some tonnage available around $0.73/lb (a very strong value), brown sits around $0.53, and oriental at $0.52/lb. These contracts would all be for Sept – July 2024 movement, with possible options for quicker shipping at a discounted value.
Canola futures are posting some noticeable losses this morning with July and November down just over $15/MT and $13/MT respectively at the time of writing. Declines are seen in most ag commodity futures, most notably soy and veg oil markets, which provide direction for ICE canola. It is reported though, that strength in crude oil has helped limit losses today. Local basis levels fluctuate quite a bit depending on the purchaser ranging from $1/MT over up to $30/MT over leaving cash bids at $16.00-$16.90/bu delivered plant for old crop pending location. The same rings true for new crop with basis levels posted anywhere from $15/MT under to $25/MT under placing production bids at $15-$15.30/bu delivered plant. Call to post your targets today!
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.