Chickpea markets were a little erratic this week with a couple of buyers looking to submit offers on a US tender that closed last night. The general feel from the producer side of things is to hold and wait for the potential upside still on the horizon. Isolated rains have been helpful to many, but general moisture is not widespread. The overall consensus is that growers are not out of the woods yet regarding drought, and it will take more than a rain shower in May to reverse dry conditions. Old crop bids for #2 large Kabulis are $0.35-$0.36/lb, while the ask is $0.38-$0.39/lb FOB. New crop bids for #2 large Kabulis are $0.33-$0.34/lb with an AOG and Sept.-Dec. movement. No change has occurred with the petfood/sample market despite every buyer on the hunt for it. Depending on the day/quality/location bids range from $0.18-$0.22/lb. One thing that can be said is that the market is showing more sensitivity to chickpeas dated 2019 and older. Check your bins, confirm quality and if chickpeas are on the agenda for movement, offers are the best way to get the most out of the market right now.
While flax prices have decreased in Europe due to decent growing conditions and supply in the Black Sea region, there is still a small pool of buyers looking to buy old crop at $23/bu picked up. New crop pricing is holding strong, ranging from $16.50-$18.00/bu picked up depending on movement, complete with an act of God. The new crop prices are expected to remain sideways as the carryover on old crop flax will be minimal. Going forward, global flax markets in the upcoming crop year will depend much more on the production out of the Black Sea region. Canadian flax carryover will be minimal, so markets will be looking to the Black Sea region to fill the gaps. The biggest unknown is how much supply will be produced overseas.
Barley markets take a step back this week, but on the bright side we still have some blistering numbers out there for both new and old crop feed. As always, feed barley bids are area dependant and are now indicated at $6.25 – $6.75/bu FOB farm. Due to strong spot bids, carry over for 2021 should be next to nil, which seems to be helping hold up new crop values. New crop bids range anywhere from $5.00 – $5.50/bu at the bin on a straight DDC (no act of God). These are great, if not historic feed values and we urge growers not to be left wishing you would have taken the time to shovel out the corners of those flat bottom bins or signed up some production. Weather reports are indicating rain and snow for most areas of Saskatchewan over the next few days which would be welcome, should it ring true. Barley is typically a decent crop for retaining the moisture and pushing itself through. If that’s the case and values hold up, you can very easily expect it to be one of the top 3 return on investments to the farm.
Not to sound like a broken record, but not much has changed on the oat front this past week. Prices remain flat at best and when you can find a bid on milling oats, look to see pricing around $3.70/bu picked up, pending farm location. Looking forward to new crop pricing, you’ll see bids in around the high $3’s – $4/bu range with 2022 new year pricing popping up just over $4/bu for those located in Eastern Sask. If you’re sitting with feed oats in the bin, don’t hesitate to reach out with details although there haven’t been many active bids, buyers will still try to work with them. Prices have been hovering around $3.40/bu picked up on the farm on heavy product in select locations.
The pea market remains quiet as seeding is well under way and even wrapping up in a few areas. Chinese & other demand has pulled back for the moment, seeming to be covered well enough for the first part of the 2021/2022 marketing year. Old crop and new crop pricing have had no change from last week. Yellow peas are at $9 – 9.50/bu FOB, with new crop prices posted at $8.50/bu – 9.00/bu FOB. Green peas had a few trades at $9.50/bu FOB with new crop still quiet at $9.00/bu. The maple pea market remains stagnant at $9.50/bu FOB for both old and new crop. If our yields do get reduced due to poor moisture conditions, we could expect prices to recover. However, this will not happen overnight.
Canaryseed is strong once again this week, but with rain in the forecast for some key growing areas, we may see things soften. New crop is trading at 0.33c/lb FOB farm in all areas while old crop still trickles in at $0.35/lb on farm in many locations. Production contracts contain an act of God on 10bu/acre, which is a great starting point for taking some risk of the table. A general rain event this week is likely to determine market direction next week, but that is assuming forecasts are correct. If you are on the fence about booking, now may be time to hedge your bets before the rain comes. Offers are always a great way to advertise your grain and get top dollar, so if you have a target in mind call to post one up.
‘Tis the season for crop condition scores, planting progress and weather forecasts to drive markets. Global production estimates are cautiously increasing and encouraging weather forecasts are being circulated. That said, the North American crop is a long way from the bin and markets will remain manic for a bit yet. As for today, markets are off and technical selloffs rule the day. Local soybean bids are reflecting buyer coverage and have slid to now hover around $15.00/bu picked up depending on location. Buyers are encouraging any reasonable offer to be brought forward rather than posting a standing bid. Buyer’s inquiries for higher quality fabas have slowed. However, $9 .00/bu FOB farm is a reasonable target for #2 quality. Dry bean acres are forecast to decrease for 2021. Shrinking new crop acres has prompted a bit of an uptick on old crop values with some buyers.
After a big dip to end last week, July canola futures have rebounded to be about the same, sitting at $922/MT. Buyers have turned their eyes to the November futures for trading now, which have taken a bit of a blow this week. They currently sit at $713.20/MT, down from $754/MT at the same time last week. On farm bids have taken a significant hit the past couple weeks as we near the transition to new crop. So, if you’re holding onto some canola still, now might be the time to pull the trigger. Forecasts for much needed rain across Western Canada played a roll in the recent weakness as well as strength in the Canadian dollar. Whether the forecasted rain will be enough to kickstart a much-needed canola crop is another question and one we will find out in due time.
Mustard prices are still looking great this week with lots of buyers showing interest in old and new crop. The yellow market has shown the most interest with old and new crop bids up to $0.50/lb at the yard for #1 quality yellow, which is a number that we have not seen with yellow in quite some time. Dryness is still the biggest issue but maybe some of those worries will be put aside with rain in the nearby forecast; time will tell. Prices on oriental and brown remain at similar levels to the strong values we have seen recently. Brown bids on old and new crop are being shown at $0.40 or a little better in recent weeks. Oriental prices are still variety dependent with buyers paying about a 2-cent premium for Forge type at around 35 to possibly 36 cents/lb picked up on farm.
Seeding in the Prairies seems to be moving right along this week as many growers report almost being wrapped up. Wheat prices have dipped a bit over the past week with bids for 13.5% protein #1 Milling now around $8.60/bu delivered to plant for May/June movement. Lower protein wheat (12.5%) of the same spec remains at a slight discount in the range of $8.40/bu delivered for May/June. The durum market continues to be strong over the last while and has been trading at $9.50/FOB primarily down in the Southeast part of Saskatchewan. Feed wheat takes a bit of a hit this week with red futures and moisture events across the prairies. However, bids still remain attractive and are now quoted at $7.75 to $8.25/bu FOB in much of the province. The closer you are to feedlot alley, the better bids get, but don’t hesitate to reach out from anywhere as buyers are hungry to purchase.
Lentil prices continue to clip along this week with no signs of bearishness. There is lots of chatter through the grapevine that India is considering dropping tariffs as well as enforcing the provisions of the Essential Commodities Act. This act is to ensure that there is adequate availability of essential commodities to the population. Execution of this means everyone involved with the trade of food must release their inventories. It was confirmed on the weekend that India did reduce their tariffs on Tur (Pigeons Peas), but so far, this has not affected pricing of lentils. There is a chance it may help the large green market as they are used for a substitute to Tur. A quick recap on values: spot red lentils trade at $0.36/lb FOB with new crop as high as $0.34/lb FOB with act of God. Large greens continue to trade at $0.40/lb on farm in many locations with new crop bid as high as $0.39/lb FOB farm. We wait for further news from India as it could make for interesting times in the lentil world.
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