The chickpea market has been under pressure the last few weeks, as have most pulse markets with recent news relating to India. Old crop chickpeas have slipped from the highs with bids much harder to find this week. Currently we still have a few opportunities for old crop chickpeas around 60 cents/lb picked up on farm depending on location. These contracts may have some sizing requirements. New crop contracts were still available last week trading at 42-43 cents/lb picked up on farm for Sept/Dec movement with a full Act of God, but have become tougher to find this week. Business has still been done at these levels, but buyer demand has slowed, with some stepping out for the time being. Producers interested in growing chickpeas should look at making this decision very quickly. Growers that have not signed new crop up should look at this as a great opportunity to get your first 10 bu/acre locked in at a very profitable value. These opportunities will not last forever and should be taken advantage of.
Soybean market has lost roughly 25 cents/bu since late last week. Thursday’s USDA report did forecast an expected reduction in U.S. soybean ending stocks. However, the 5-million-bushel reduction fell short of the deeper drop that traders had been banking on. U.S. soybean harvest is near completion at an estimated 93% done, 2 points behind the 5-year average. Brazil has planted 57% of their soybean crop versus the 5-year average of 56% complete at this time. Local soybean bids are $10.50/bu FOB farm range. Local faba bean bids are in the $6.00/bu range for feed and $6.75-$7.00 FOB farm range for export quality.
Prices on canaryseed have been flat and without much movement over the past few months. Prices remain around 20 to 21c/lb for sound quality FOB the farm. There is not much of a downside in the canaryseed market because producers will be hesitant to sell the commodity at these levels. There is definite upside potential for later in the 2017/2018 crop year in the canaryseed market, and people think the price will hit upwards of 25c/lb. We will have to wait and see what exactly shakes out, but for now keep in touch with your merchant on up to date pricing.
There was a lot of news that filled the pea markets last week. As most have heard, India has come out with a 50% tariff to be applied on all pea imports. Looking at India’s supply they have a good amount of stocks that have built from Black Sea origins and their own production. This has brought quite a bit of concern to the pea markets, as some buyers have dropped their yellow peas to no bid. Right now, we have $6.00/bu picked up on yellow peas and $7/bu delivered on greens. There will be other export options for us as buyers adapt to this new market. However, with India paying lower prices there is no reason for other countries to drive the market price up.
Flax markets have been sideways over the past week, with prices at $12.50/bu delivered to plant for #1 quality, Dec – Mar movement. Milling quality is trading at $12.50/bu picked up in the yard. Supplies of good quality flax are still low, with much of last year’s carryover being #2 or lower. There has been some strength in the European market, but there is a good supply of Kazakh flax that still needs to find a home. US values have been slightly weaker, but even without demand from Europe, Canadian flax prices should remain firm with the prediction of tightening supplies. Canadian flax supplies are still firm, which could mean prices remain sideways for the next while. If you have lower grade flax left on farm, we still have options for movement.
Lentils have slipped again following the news of India’s 50% import tax on peas. We are still waiting to hear whether they will impose a similar situation on lentils, rumors are suggesting we could see a 25% import tariff, but for now nothing has been put in place. Other news out of India this week is that they are planning to dispose of 500,000 tonnes of pulses buffer stock by March 2018. This is to help them limit their over sea trade, as well as support local pricing. Expect lentils to remain quite for some time, as the world is overstocked and there are no real market scares in place at this time. Best new crop values we have seen on LGL was 32¢ for a No. 1 and 30¢ for a No.2 with an Act of God. Have not seen much for new crop reds or small greens yet, but if you have a value in mind, please feel free to throw out a firm target.
Oats appear to be holding steady, although trade has been quiet on both the feed and milling side of the market. As noted last week, #2 CW oats maintain values around $2.50/bu picked up in the yard dependent on freight from your location. Meanwhile in the feed oat market, trading is possible between $2.15-$2.25/bu picked up in the yard for heavy and dry quality. The more south you move the better the price will get so be sure to get in touch with your merchant to see what’s possible in your area.
Mustard has been firm all week and new crop bookings continue. Spot prices are showing 43 to 44 cents picked up on yellow, and brown mustard is also sitting at the 42 to 43 range. Oriental spot prices remain at 33 to 34c/lbs range. New crop prices are strong out of the gate and are up to 41¢/lb per pound on yellow mustard, up to 36 cents on brown mustard and up to 33 cents on oriental. These are all picked up in the yard with an Act of God for full crop year movement. Shorter delivery options are available. Call your Rayglen merchant for more details. We also have certified and treated seed available. With pulse commodities dropping in prices, we could see some more acres turn to mustard. Running some numbers will show great returns per acre making mustard a strong choice for your farm.
Feed barley has been stable this week. We are seeing a bit of pressure from corn entering the market and taking a bit of the demand, but for the most part that has not reflected on our prices yet. Bids range between $3.80-4.00/bu in certain areas for dry and heavy barley. Movement is also not too bad, as buyers look to move a bit before Christmas. Some deferred Jan-Feb delivery is available as well. On the malt side of things, bids are few and far between, with much of the malt barley moving into the feed market just because prices are competitive, with no risk of quality discounts. Also note: offers are a great way to show your grain to buyers, so please talk with your merchants on that.
Canola futures climbed to nearly $520/MT yesterday on the January after a $6.60/MT gain. This gain was driven mainly by soy with a good rally in the soyoil and soybean markets. Good crush data on soybeans caused markets to bounce and in turn, push canola higher. Today basis levels range between 15 under to 30 under depending on your delivery window. This puts bids delivered to plant in the $11.50/bu range. As mentioned a couple weeks ago, Rayglen is now a supplier of canola seed! We carry many different varieties including: roundup ready, straight cut and Clearfield. Yield data shows these varieties to be very competitive and in many cases better than the top varieties. Please call for more information.
The wheat market has not moved too much this week with feed bids still operating at $4.50 to $5.00/bu range depending on area. The $5 bids seem to be mostly located in the far southeast part of Sask and the west side of the province where freight costs allow. In many other areas of Sask, the bids work back closer to $4.50/bu picked up in your yard. A few buyers still have questions on vomitoxin levels this year, but this issue seems to be much less prevalent. The milling wheat market has a very wide range on pricing with protein premiums catching some lofty numbers, but the regular 13% #1 market seems to be fluctuating around $6.50 plus or minus delivered to plant. Milling durum bids on #1 quality are between $7.50 to $8.00/bu at the yard depending on area of the province. The southeast corner continues offering the best premium.
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.