Expected acreage numbers in the pea market are showing a range of 3.8 – 4.4mln acres. If planted acres are at the top end of those estimates, that will be a 2% increase from last year. StatsCan’s acreage report is set to come out soon and will give us a clearer picture, but even if we do come in at the high end, our supplies for the 2020/2021 year will be adequate. Yellow peas are showing steady demand as old crop and new crop values remain stable. Old crop is trading at $7.50 – 7.75/bu FOB and new crop is at $7.00/bu FOB. Green peas are showing a bit more downside in pricing as the gap between old and new is slowly closing. Old crop is trading at $10.50 – $11.00/bu FOB, while new crop values are at $8.50 – $9.00/bu. Maple peas have completely closed the gap with old and new crop bids both priced at $9.00/bu FOB. The pea crop in Europe has increased from last year, and depending on their current weather situation, this will add to supplies going into the export market.
The federal government released their plan to help out the agriculture sector in Canada but failed to provide support to the grain and oil seed farmers. The Canadian Federation of Agriculture requested $2.6 billion in funds and only received only about 10% of that; most of which is headed for the beef and pork industries. We know many producers are still struggling from last year’s harvest and this would have provided some relief, but alas, there is no reprieve in sight. Luckily, the feed wheat market is still hanging in there and growers dealing with spring threshed product are able to find relatively strong values. Both spring threshed and standard feed wheat are trading in the range of about $4.50 to $5.20/bu depending on freight and quality specs. The further west you go in the province the better the price usually is as feed lot alley seems to be the biggest buyer still. There have also been rumblings of new crop feed wheat down in the southeast part of the province of around $5.00/bu for Aug/Dec. If you’d like to throw in a target let us know!
Chickpea markets had no further gain from last week and now that seeding has started it is crickets out there. New crop bids for #2 quality still hover at $.26/lb FOB farm and old crop has softened a little for #2 at $0.26-$0.27/lb FOB Farm. Sample grade and feed are trading around $0.12-$0.13/lb and desi chickpeas are still quiet. Offers consistently trade higher than the market bid so consider this approach if wanting to sell. It feels like, at some point, the chickpea market has to follow suit of lentils, but no one can say when or pinpoint why. Reduced acres have always been a crutch for stronger values, so all eyes are on the next StatsCan report for a potential shift to this market.
If growers are thinking of selling lentils this week, we suggest keeping a close eye on values as we see bids range up to 5 cents/lb on reds and 2-3 cents/lb on large green and small greens. Reds are priced as low as 25 cents to as high as 30 cents delivered depending on which buyer you talk to. New crop pricing has also softened this week, as bids are seen in the 24-25 cent range FOB farm with act of God. Growers may find higher prices on a deferred delivery contract (no AOG) around 27 cents. Large green lentils have also softened with average pricing around 31 cents for #1/x2 and 30 cents for a #2. New crop bids are in the range of 28 cents for a #1, 26 for #2 and some buyers will entertain X3/#3 discounts. Again, for the most part, contracts contain an act of God and are picked up on farm. Small green lentils seem to be this week’s star as #1 trades at 30 cents delivered. New crop bids are as high as 28 cents delivered on a DDC contract for #1 quality. If you’re looking for some last-minute lentil seed, we still have some available.
Flax pricing this week remain strong with milling quality up to $16.00/bu FOB. For those with #1 quality, we have seen prices as high as $15.00/bu, picked up. There are also strong markets for lower grades, just let us know the specs. Yellow flax prices have remained steady in the $16.00/bu FOB range. We have interest in new crop as well. There is a stronger signal that the US crushers have used up most of it’s supply and have bumped local prices. Product to China is ahead of last year’s shipment pace and is favorable for Canada as volumes into there were pretty evenly split between Kazakhstan, Russia and Canada. Supplies are tight and overseas markets remain firm, which will support prices in the short-term. The market will keep a close eye on new crop acreage along with stronger competition from the Black Sea region and Europe.
Oat futures continue to gain some strength over the last week. Milling prices have been consistent ranging from $3.75-$4.25/bu delivered to MB for good quality heavy oats. Bids are poised for the summer months and revert back to about $3.00/bu FOB central Sask. Feed oats prices are hit and miss but indicating $2.30-$2.40/bu picked up. New crop oat prices remain quiet, so if you are looking to get some on the books, best to show us an offer. With some increased demand on old crop oats, hopefully new crop follows suit.
The old crop canaryseed market seems to be stuck in a freeze frame with prices continuing to hover around that 27c/lb FOB farm for May/June movement. On farm estimates look to be down approximately 20% from previous years, helping maintain these old crop prices. Though not too low to drive prices upward. The expectation is for these prices to maintain as most buyers are in a good position going into new crop and should they need any cover, you may see a little blip on the radar. Looking ahead, the forecast is for canary seeding acres is set to increase possibly as much as 25% from last year boosting 2020/2021 supply levels. Attractive new crop canary pricing is out at 25c/lb FOB farm for Sept – Dec movement with an act of God. There is some anticipation to see StatsCan report that is due out this week… but if you hope to gain insight on canary that might be tough to come by as reporting has been historically iffy at best over the years on this commodity.
Soybean futures received a bit of a shot in the arm as China continued its soybean buying spree of both old and new crop. Brazilian soybean exports will continue to dominate the world market for the near future. Local soybean bids continue to hover around $9.50/bu picked up depending on location. Faba export demand is limited with small opportunities at $9.00 picked up. Canadian faba export opportunities tend to peak in March and drop sharply in April and May in alignment with pre-Ramadan shipping. Faba feed bids still hanging on near $6 picked up. Canadian new crop dry bean acres are anticipated to jump 12% year over year. Production contracts are getting close to sold out…still a few acres available. Call your Rayglen merchant for more info.
Canola futures were slightly higher today, getting support from a weaker Canadian dollar. Gains in canola were somewhat muted by declines in Chicago soy oil. On Thursday we will see Statistics Canada release the principal crop area report. Market expectations for this spring have been above and below the 20.957 million acres Statistics Canada estimated were planted in 2019. Nearby bids are $10.25/bu delivered and decline into the deferred delivery positions. Premiums are currently available for non-GMO canola. Call your Rayglen merchant for more info.
Very small moves, if any, continue to be the normal on mustard prices. Right now, we are projecting a slight increase in mustard acres, but a small reduction in stocks going forward. Buyers are still reporting fairly slow shipping overseas. Oriental mustard remains strong compared to a few months ago. Oriental spot mustard sits at 28 cents for Forge and 26 cents for Cutlass for May to June movement. New crop is as high as30 FOB for Forge or Vulcan and 27 cents now for Cutlass. Yellow mustard is fairly stable this week as it sits at 37 to 38 cents for spot and new crop. 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. We still have open acres for an IP Brown mustard program at a premium to commercial markets. Certified seed has all been delivered this year but call us if you are short. We could possibly still find a solution.
The barley market is a little weaker the past few days as US corn prices move around and push things down some. Not to mention issues with meat cutting plants and Covid 19 but I am sure you are all well versed in those news bits. Feed barley prices across Saskatchewan range from $3.75/bu to $4.10/bu picked up in the yard depending on location. Occasionally we have saw some loads here and there trade for a bit higher on a smoking freight rate, but those deals are a flash in the pan, and it works best to have a firm offer on the table to catch them. Spring thrashed grains are starting to pop up in the feed market over the past few weeks and values for feed have not been hurt too bad yet, but if the wave gets bigger it could. Hopefully quality on the over-wintered product stays reasonably ok and doesn’t affect prices much; at this point the cereals have not looked all that bad. We have heard news of maltsters pushing back timelines on moving contracts in for this summer due to low demand and we hope that doesn’t push a lot of barley earmarked for malt into feed.
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.