The pea market has started to level off in pricing this week as many buyers have started to cover their needs. With strong exports thus far, we are expecting to be left with low ending stocks. Looking at StatsCan pea acreage of 4.28 million acres, even if yields are average, our supplies could be tight. However, we are expecting pea acres to come in slightly higher than StatsCan’s original estimate. It is hopeful that China will continue to import peas at current levels, but this is what our 2020/2021 crop year will be susceptible to, as per reports. If our exports remain firm into China, this will also contribute to supplies being tighter. Current pricing on yellow peas range between $7.50-8.00/bu FOB with new crop at $7.00/bu. Green peas are trading at $10.50/bu and new crop is $9.00/bu. Maple peas remain unchanged with old and new both trading at $9.00/bu.
Canaryseed pricing continues its sideways trading again this week at 28c/lb FOB farm for that June – July movement. According to StatsCan reports, there is 36,000mt of product on the farm, but with the continued inaccuracy of on farm stock reporting, that would indicate that we wouldn’t be able to supply exports for the rest of the year. Now, if this was the case, one would expect to see a dramatic increase in pricing, which has not come to fruition. It is thought that stock levels are actually closer to double that but no matter what, we’re still leaning towards tighter ending stock values. That being said, putting up a target isn’t a bad play if you are hoping to catch a possible bump in value. New crop canary is holding firm at 25c/lb FOB farm for Sept – Dec movement with an act of God. StatsCan reports indicate a modest increase in acres for this upcoming year thus indicating tighter supplies, but once again it’s canary reporting.
As expected, there was not much reaction to the acreage report last week. Prices remained generally stable. One concern that has arisen is yellow mustard. The seasonal strength we usually get in May up to July has not appeared yet and values are actually slightly down. Demand remains sluggish and prices are wanting to weaken. Yellow mustard sits at 37 cents for spot and new crop. Spot oriental mustard sits at 27 cents for Forge and 25 cents for Cutlass for summer movement now, June to July. New crop is sitting at 29 cents FOB for Forge or Vulcan and 27 cents now for Cutlass. Brown trades at 27 to 28 cents FOB for spot and as high as 29 cents for new crop. Talk to your merchant about placing targets for new crop especially on brown and yellow. If you have open acres on yellow, now may be a good time to get 10 bu/acre booked with act of god.
Chickpeas maintain monotone this week for current crop, but we see a bit of life in new crop with bids around $0.28/lb FOB farm including an AOG with freight sensitivity. Old crop values hover at that $0.26-$0.27/lb FOB farm with June-July movement and sample grade at $0.12/lb FOB farm. Statistics suggest North American markets have the most amount of inventory on hand with the current strongest buyers being the US and Pakistan. As the inventory slowly gets chewed through the market remains flatline as chickpea supply on a global scale is readily available. Growers are comfortable holding stock for higher levels and buyers are comfortable with global supply therefore cautiously buying at tradeable levels. If bringing chickpeas to market is a part of your new crop strategy, offering out to the buyers is likely the best way to get the most value.
Flax prices remain strong again this week, with prices up to $16.00/bu FOB. For those with lower grade or spring threshed flax, prices remain competitive, so let your Rayglen merchant know some specs to get appropriate pricing. New crop brown flax remains firm up to $13.00/bu, picked, act of God. The yellow flax market has been sideways over the last several months. The overall lack of good quality flax has kept prices firm and is likely to remain that way for the short term. There will be volume coming again from the Black Sea region which will create competition into the US and Europe. With the demand strong now, it’s a good time to get the flax moving off farm. The market will continue to watch new crop acreage and make any adjustments from there, but these prices are not likely to last into fall.
Canola prices have leveled off this week with the futures finding a bit of a ceiling at $475/mt that they have been unable to push through over the last week. Recent climbing in the past could weeks can be drawn back to recent strength in the veg oil market and prices getting a bit better in the overall oil complex as well. Basis levels seem mostly sideways from recent weeks and bids vary from $9.75 to $10.35/bu delivered to local crushers or elevators. Soybean futures remain at the lows that they have been hovering around over the last month and as long as that continues on, any big moves for canola are bound to be limited. Seeding has progressed a lot across the province over the past week with many reporting they are close to finishing in the south. The north trails of course and the recent rains will bring lots to a halt for a few days, but a lot of ground has been planted in a hurry.
The milling oats market maintained its strength on old crop bids from last week. Bids into the summer move from $3.75-$4.25/bu delivered into plant, depending on location. The best pricing is for movement into southern Manitoba, so freight will eat a bit into the bid for anyone from Saskatchewan. That being said, these are still strong pricing opportunities before the new crop comes off. New crop pricing drops quite a bit with bids ranging from $3.25-$3.50/bu delivered into plant. Movement period is the big factor there, with best pricing reaching out into full crop year movement. Feed oats continue at the $2.50/bu FOB farm levels, depending on weight and moisture. Opportunities do exist for off spec feed oats as well, so be sure to give us a call with your specs.
The feed wheat market has remained quiet as buyers continue to purchase what remains out there. Bids continue in the $4.75-$5.20/bu FOB farm area depending on location, with best pricing available the further west you go towards feedlot alley in southern Alberta. After a bit of a down week, Minneapolis spring wheat futures rebound today, increasing 9-12 cents to end up right around even since we released our report last week. The jump up comes from piggybacking on Paris and Black Sea futures markets rising after concerns amid government controls and dry weather.
Lentil markets were quieter over the past week. Sales have tapered from the heavy selling a month ago, but prices remain lucrative. Red lentils remain at 29-30 cents/lb for old crop pricing, with new crop priced between 23 -24 cents with an Act of God. Large green lentils #1/X2 are trading at 31-32 cents/lb, #2 at 29-30 cents/lb and X3’s at 24 cents. New crop has traded as high as 29 cents for a #2 with Act of God and FOB farm. Small green lentils trade between 26-27 cents for #1 on new crop, while old crop prices range between 26-27 for #1 and 24-25 for #2. If you still have beluga lentils in the bin give us a call as there have been a few buyers asking if there are any still available, but we aren’t getting much for pricing indications at this time. Markets are stable for now, but in these uncertain times its unknown what news or situation will cause the markets to rise or fall.
Barley is shaking things up on a global scale with the rift between China and Australia creating an unpleasant situation amongst the two. Does this open up an avenue for increased Canadian barley export? It’s looking like it might, but time will tell as it’s definitely something to keep your eye on. For now, barley prices are holding on with spreads ranging from $3.75 – $4.35 FOB farm with the latter pricing closer to feedlot ally for May – June movement on dry heavy product. If you happen to have some old crop malt (Copeland variety) in the south east call your Rayglen agent as there may be some opportunity to fetch a decent price on limited tonnage. Fall pricing continues to remain quiet but if you are looking to pencil something in the books, we can find you an option to look at.
Soybeans seen a slight gain of 3-4 cents/bu at close following crude oil gains. Weakness capping these gains comes from a few different areas, but one to highlight is the absence of new US to China sales. Reports of good planting progress across Canada and the US are hitting our desk which is nice to hear, but not providing much for support in the market either. Today, bids on soybeans remain relatively unchanged and sit in the $9.50/bu FOB farm range. New crop dry bean programs are pretty much wrapped up this year, but we may have an option available for those looking for last minute seed and contracts. Faba beans continue their lackluster path with bids unchanged from last week and export opportunities small. Feed Fabas still hang around $6/bu FOB if you’re still sitting on unpriced product.
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