Oats are doing much the same as they have in previous years around this time. Not a huge demand on the old crop side of things it seems. There is the odd $8.00/bu price still kicking around for a #2 CW, but not necessarily a deep bid. If you are looking for above this price, we highly suggest calling in and placing something on a firm offer. Interest for feed oats remains to date, but pricing all depends on quality. So same scenario as milling, call in with your specs and let us try to obtain the best price for you. New crop oats have interest at the $6.00/bu price with a jump of roughly $0.25/bu premium for a delayed delivery period. Although the roll over options seem to have come and gone, there might still be a few buyers out there who entertain the offer. With lots of the oat growing country being wetter to start oat seeding this year, suspect this may change the seeded acres for oats. If you have been on the fence about getting something on the books, now is a good time to pull the pin and get a certain percent locked in.
Canola markets are in another rough fall Wednesday after gains on Tuesday. The whole board is red on Wednesday with losses in wheats, corn, and soybeans, so canola is no exception. Seeding progress has picked up a little this week with some wet areas to the east able to get rolling, and progress in the drier areas out west pushed past 50% done or better. With lots of work still to do the in east where canola is seeded the heaviest, we need some drier weather to continue out there to keep acres supported and continued rain will reduce acreage. On the other side of the coin, the canola acres out west are not off to the greatest start with limited water supply. They will need some continued rain to see a decent crop out that way. New crop and old crop prices overall remain pretty sideways to recent weeks with $26/bu for old crop, and new crop at $23-$24/bu range with no act of God.
Feed barley prices remain at historically high levels for both old crop and new crop. For old crop we have been seeing $8.80 – $9.00/bu picked up on farm. The only change is movement keeps getting pushed out, and to get these prices, movement is July – August. We may have some quicker movement options available however at a discounted price. New crop feed barley has closed the gap between old and new as most areas have been seeing $9.00/bu pick up for September – December movement, no act of God. Malt barley prices have been slow to come by, but there have been some new crop bids around the $10.00/bu mark. We are expecting barley acres to be down this year, but with recent rains pushing back seeding in some areas, we will have to wait and see if some choose more barley acres for the shorter growing period. Old crop feed barley still active in SK at $8.50/bu and higher up the closer you get to SE AB. New crop feed barley valued around $9.80/bu delivered into Lethbridge with freight spreads backed off for SK FOB bids.
The flax market remains relatively unchanged from last week with old crop bids sitting around $39/bu picked up on the farm with buyers hen pecking only as much product as needed. No one wants to be long on what are still historically strong prices. With decreased production and low carry in stock, you may see Canada import product due to high pricing here at home until new crop comes into play. Looking ahead to new crop, Stats Canada estimates a decline in seeded area based on farmer seeding intentions. As such, new crop bids continue to show strength at $30-31/bu picked up with an act of God depending on farm location.
Pea prices remain sideways for the most part. Yellow peas continue to be $17.00/bu picked up, while green peas saw a little traction last week up to $15.50/bu delivered in some areas. New crop for both continues to be in the $13.50-$14.00/bu range, picked up, act of God. Exports could be limited as India is likely to remain out of the picture, and the US will be recovering its own crop. Chinese demand could come from Russia, but so far no official reports. Other Asian markets could be interested in Canadian peas, but prices would have to be more competitive. All of these factors could have demand unchanged from last year. Analysts expect green pea acres to fall back and yellow pea supply to be up. With yields expected to be up from last year, even if Canadian supplies are limited, there is still a possible risk to downside pricing. Buyers are looking ahead to new crop as prices are considerably lower and can expect hand to mouth buying for crop left in the bin.
Wheat markets maintain their fluttering movement for another week and started this week off with a bit of a slip down. #2 CWRS 13.5 pro valued at $15.41 for June and $15.50 for July out of Saskatoon, SK., and new crop with a bit into the 4th quarter of 2022. Feed wheat bids into Lethbridge are down about a dime from last week at $14.70/bu delivered June-July, and new crop seeing $12.80 for Aug/Sept movement. Feeders nearby are said to be filled up for the time being and while the winter wheat crop has seen its challenges, it is about 70 days away from harvest.
Lentil markets continue to be strong for both old and new crop. Buyers are still looking to get a little more coverage on old crop #2 or better large green lentils, with prices back up to 55 cent or better FOB farm for May-June movement. Once buyers get their needs covered, one would expect prices to fall back as the trade will wait for the new crop to be harvested. New crop prices on large greens are 10 cents higher than last year, which is a recent high point. Today many buyers are trying to lock in new crop at 48 cents fob farm for a #2 or better. This price puts green lentils as the best returning pulse crop and #4 for all specialty crops. The mustards are the only specialty crop that is showing a better return than the large green lentils. Red lentils also remain strong for this time of year as buyers are still paying 41 cents FOB farm for May-July movement and new crop is not very far behind with 39 – 40 cents FOB farm trading including an AOG. The price spread on new crop reds from last year to this year is about 8-9 cents better. This puts the reds right behind the large green lentils for the 2nd best returning pulse crop. At these levels of 33% Return on Investment on reds and 35% Return on Investment on large green lentils, it might be time to start hedging in some profitability for the fall.
There is a little movement in old crop chickpeas this week with new crop pricing holding steady. Buyers are showing some interest in old crop chickpeas at the 52 cents/lb FOB farm for May-June movement. This market seems too thin at this level as not every buyer is looking, and the tonnage does not appear to be very deep. Chickpeas may also be feeling some pressure as India Ag Ministry is reporting a record crop of chickpeas at 13.98 mln which means India likely will not be looking to import any in chickpeas for the short term anyhow. When talking with buyers, the oversea trade is reluctant to pay any big trades on the books and will continue to buy hand to mouth hoping for cheaper product to come available. The good news is that right now there is only a 2-cent gap between old and new crop. There are new crop contracts available at 50 cents Fob with an AOG. If you are trying to decide on selling old crop or new crop, selling the old might be a better decision as there is likely more chance of seeing gains in new crop versus old crop.
Prices on new crop mustard showed some slight softness this week, but bookings continued at a decent pace as seeding continues. On the downside, we are seeing some buyers seriously pull back on spot pricing. Some have even gone to no bid for now. Buyers are saying they have coverage now for the short term and buyers overseas are looking to new crop. Rain has fallen in some growing areas, and it appears the start to the crop looks decent right now. These factors are all influencing the spot price. That being said, we still have bids with certain buyers that are strong for now. Spot levels have the price around $1.85 on yellow, brown remains at $2.00/lb for a June/July movement, which is still outstanding, though we have serious concerns that this price will not last long. Oriental has slipped a bit to about $0.95/lb FOB farm. New crop values on all colors seem to have slipped a bit as yellow, brown, and oriental mustard are all sitting at $0.90-$0.95/lb FOB farm, with an Act of God including drought. Talk to your merchant on this, as a firm offer might be the way to go on new crop right now. Perhaps you might squeeze an extra penny or two in some cases and get the movement you want.
Old crop soybean bids continue to hold value due to tight stock, instability, and volatility in the vegetable and oilseed trade. Active old crop bids range around $18/bu picked up on the farm. Buyer interest also remains strong for feed fabas with buyers bidding $13/bu FOB farm. Buyer interest is a bit quieter on a #2 faba, but when buyers are looking, bids are ranging around $15-$16/bu FOB. As always if you have a firm target in mind, give your Rayglen merchant a call. Looking ahead, an expected increase in dry bean seeded acres in North America looks to be a bit tempered due to adverse planting conditions. This should hopefully lend support to new crop values.
Not much to report on the canaryseed front this week as far as changes. Bids are sitting in the $0.48/lb range from most buyers. Targets may have a chance at that $0.50/lb FOB farm mark on a case-by-case basis. Talk to your merchant and keep an offer up for a little while, as it may trigger. New crop values also remain steady, but not many contracts have traded this spring yet despite historically strong production contract values. Trades may pick up as rains have come and planting finishes up in some areas. New crop contracts at $0.40/lb with an act of God is a very strong start for canary at 10 bushels to the acre. Remember when canaryseed traded for 20-25 cents for many years it seems? For any sales targets above market value, call in today to post a firm offer, as we have been seeing these marketing tools gain buyer attention.
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