It’s been another quiet, slow week for the canaryseed market. Prices have been sitting at 21 c/lb FOB the farm with no indication of moving yet. There has been slight drop in carryover from last year and new crop acres are down as well. This could translate into a decline in stocks of 30,000MT from the previous year and potentially put some strength into the marker. You might see the price bump up a bit this late summer/ fall, but only time will tell. Dryness is also a concern that looms over the market, although recent rains in the south have relieved some pressure.
Not too much action on chickpeas this week; basically the status quo over the past month. Prices have been seen around 30 to 31 c/lb FOB the farm for a #2 grade on new crop, but old crop product is virtually nonexistent. If you did manage to have some left in the bin, call your merchant to find a value. Most locked up next year’s acres earlier in the year, with little to no contracting being done the last few weeks. Prairie weather concerns continue to put pressure on the markets, but recent rains should help that. As we have seen in past years, dry conditions do seem to help the quality of our chickpea crops, as disease and green count fall.
As of last week, the majority of pea planting was nearing completion. Crop reports were showing over 90% complete in Saskatchewan and over 85% in Alberta. As per a Stat report, looking overseas to India, the 2018 rabi crop should be slightly smaller, which should help pea imports from declining even more this marketing year. However, we are going to have larger carryover stocks on farm. Looking at current pea bids – there hasn’t been much change. Yellow peas are trading at $6.75/bu FOB and green peas have been trading at $9.00/bu FOB. There is an opportunity for smaller variety green peas to trade at $9.00/bu too, call your merchant if you have product you are looking to move before harvest.
Flax prices are sideways this week, with bids still in the $12.50-12.65/bu range picked up in the yard. New crop flax has hit and miss interest at $12.25/bu picked up in the yard. March exports from the Black Sea region reports the lowest levels since 2017 harvest. However, the inventories are still at a record surplus, which means those exports were not caused by lack of supply. The strong US bids are suggesting lower supplies, but other global markets are not feeling the pressure of a shortage. Canadian flax bids have been trending higher, which could mean on paper, Canadian supplies are getting tight. Some analysts believe supplies aren’t being reflected properly on paper though. As we write, some new crop bids are on hold as some buyers believe there are more acres being seeded than what is reported, other writers suggest there is still more upside potential on prices. If you do have any off-grade flax in the bins, this is a good time to move it before new crop does come off and we still have opportunities.
Soybean futures are trading down today in response to Tuesday’s USDA crop progress report. The US soybean crop is 77% planted, up from 56% a week earlier and ahead of both last year and the average at 65% and 62%. The crop was also reported as 47% emerged vs. the average of 32%. It is expected that this week’s rains forecasted for Mid-west will help to get the beans in the ground off to a good start. Continued uncertainty on the US-China trade tariff battle is weighing on the market, whereas Brazilian shipping delays are supportive. Local soybean bids have recently ranged $11.00-$11.20/bu FOB farm depending on location. Local faba bean bids are in the $6.25-$6.50/bu FOB farm range for feed quality depending on location.
Feed barley is up in value this week once again. Due to spotty rain, barley crops are looking very thirsty in some areas, which is holding this market up. That being said, there looks to be thundershowers towards the end of the week covering most of Sask, so hopefully it hits everyone. Also, a weaker CAD helps the price strengthen. Prices for old crop barley are anywhere between $4.70-5.00/bu FOB farm for movement before harvest. New crop barley is still hanging around that $3.85/bu FOB farm with an Act of God. Offers are a great way to catch a high in the market so make sure you are talking to your merchant on those.
There was some action in the green lentil market as buyers were purchasing old crop #2 between 25-26 cents. Price really didn’t change from the previous week, but there were more players at the table. New crop is still seeing bids in the 25-cent range for No.1 and 23-cent range for No.2’s with an Act of God. Reds are still flat, with a couple buyers dropping their bid and ranging between 16.5 No.2 FOB, to a high of 17.45 del. Most of the industry is trading hand to mouth with no one really taking on big positions. Farmers seem to be doing the same, only letting enough go to cover payments. Lentil transaction for the remaining crop year will likely continue on a slow and steady pace.
No major news in the oats market as prices continue to hold steady this week. We always have buyers looking for some, so be sure to give us a call if you have either milling or feed quality oats. For #2 CW oats, buyers have gone as high as $3.00/bu delivered into plant on the eastern side of Saskatchewan for pushed out movement. We can always work back freight to get you a priced picked up in your yard. New crop #2 CW oats are also in the $3.00/bu delivered plant range with AOG if you’re looking to limit your downside risk. Feed oats still are trading at about $2.25 picked up in the yard depending on your location. This price is based on heavy and dry feed oats, but our buyers are willing to look at off spec oats as well, so let your merchant know what you have to find a price.
The feed wheat market remains steady this past week, with buyers showing bids at $5.75 picked up at the farm in most areas of the province. A few locations are catching a bit stronger of a number as freight advantages kick in. The feed markets seem to be carrying on at a simmer, as stocks are not abundant yet not scraping the bottom of the barrel neither. Recent rains obviously will help crop conditions a little bit, but still much of the province is pretty dry (west), so we will have to keep an eye on production numbers for the fall. Number 1 western red spring prices remain around $7.25/bu or a touch better delivered to plant in summer for 13% plus protein product.
Again, mustard remains quiet as far as price movement goes. Buyers are reporting slow sales and growers have been busy seeding, making spot sales slow. Seeding in most parts of Alberta and Saskatchewan on mustard is basically wrapping up and reports are coming in. We have had some issues being reported on poor germination and insect pressure, so this will have to be monitored going forward. Rain is forecasted over the next couple of days in a wide area. It does seem like a good time to get some old crop moved in June and new crop production locked up. Yellow mustard sits at $0.34/lb on old crop and $0.35/lb on new. Old crop brown varieties continue to hover around $0.40/lb and $0.33/lb on new crop. Finally, oriental mustard values hover around $0.27-$0.28/lb for both old and new crop, with a small opportunity for better spot values if you have Vulcan variety. Mustard seed sales have come to an end this year, but if in need still for the last week of May give the office a and we can try to get something done.
Canola took small losses today of $2.10/MT, but have been a bit of a mixed bag when taking Monday and Tuesday into consideration. Spot contracts are still being booked off July futures, which currently sit at $537.70/MT. New crop is being booked on the November futures, sitting about $10/MT lower ($525/MT). Basis levels have been aggressive as well, hovering around $3/MT under on old crop and $25/MT under on new, both delivered to plant. These are great numbers to get product locked in at. Weakness in canola is driven mainly by improving moisture across the prairies and a strong CAD. Call in to put your firm target in on canola or any other commodity.
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