Canary prices have remained subdued recently, with spot business bids ranging between 40 to 41 cents per pound delivered to plant. There’s limited interest from both buyers and sellers at these levels, and a new crop bid at 35 cents, inclusive of an act of God, has not gained traction among growers. The lackluster trade is attributed to weak demand for product headed south as well as overseas, coupled with a lack of fresh market-moving news. We continue to welcome offers to maximize market opportunities for both old and new crop canary. The advantage of Rayglen’s offer system is its widespread outreach to multiple buyers, which gives you the best chance at successful trade.
Green pea market activity has cooled down over recent weeks and prices range between $16.00 and $17.00 per bushel FOB for Jan-Feb movement. Higher bleached product continues to face reduced demand with buyers seeming to have their needs covered. Yellow pea bids struggle to consistently reach $11.00 FOB farm with the majority of purchasers quoting values around $10.25-$10.75 in the yard. Rayglen’s yellow pea trades ranging from September 1st to present lag behind last year, likely influenced by slower shipping, limited product availability, and pricing challenges especially when compared to greens. Maple pea demand seems to have cooled slightly over the past week, but growers can still expect to see strong bids ranging from $23-$26/bu FOB farm. New crop programs for next fall remain limited but show potential prices of $12.00/bu delivered for green peas and $17.00/bu for maples, likely to include an act of God.
Canola futures have had a recent uptick since late last week. This has been largely led by the soybean complex and recently sustained by soybean oil values. Palm oil, which contributes over 1/3rd of global veg oil, is forecast to fall below previous expectations due to Malaysian production challenges. This is supporting global veg oil prices for soybean oil and by extension canola oil too. Furthermore, Brazilian soybean production estimates are being trimmed due to drought in the north and flooding in the south. Canola, in and of itself, does need fresh and expanded export volumes to avoid a heavier carryout position. Canola bids are in the range of $15.25/bu to $15.76/bu FOB farm location dependent.
The wheat market remains stable, with milling quality, 13.5% protein hard red spring values still hovering around $9.40/bu delivered plant in central Saskatchewan. In comparison, feed wheat bids sit at approximately $8.00/bu FOB farm, in some cases offering better returns for sellers. In world wheat news, the recent WASDE reports suggest a robust crop, and offers a bearish outlook despite reductions from Argentina, Kazakhstan, Brazil, and India. The US winter wheat crop is forecasted for improved moisture over the coming week, which should start this crop above average compared to previous years.
Canadian mustard demand remains slow, with spot prices sitting around 80 cents per pound for #1 yellow, in the mid-60s for brown, and oriental mustard continues to struggle to secure bids in the 60s with most quotes starting with a “5.” New crop inquiries are consistent among growers and this week we have secured the first hint at a new crop program – reach out to your merchant for details. Program availability and enthusiasm remain behind last year’s pace, but there will be options for growers. Planting seed is available for all types and varieties with free delivery to the farm; call for pricing and to secure your seed supplies.
Barley values look slightly lower than last week, trading in the range of $5.50-5.90/bu for several areas in Saskatchewan. Premiums exist for product in good freight lanes, but shipping timeframe is critical. Quick moving barley is difficult to find as many buyers push their bids into the first few months of 2024. Looking at the broader picture, barley is under pressure for a number of reasons. First, the relationship surrounding Australia/China barley has eliminated roughly 1MMT of exports and Canada has begun shifting back to this reality. Second, the drawn-out story of corn into feedlot alley is now present as US corn harvest and shipments to Canada progress. Looking locally at malt, buyers have been quiet as they evaluate their own needs. Despite a quiet barley market, pockets of opportunity have shown up so reach out to your merchant and let us explore all options if you’re looking to make any sales this winter.
Green lentils bring some excitement in an otherwise generally lackluster and quiet market space. Despite some purchasers lowering bids, large and small green lentils still pencil in extremely strong at $0.70/lb and $0.65/lb FOB farm respectively. Growers with #1/X2 large greens may see premiums to these values, so it is advised to call your merchant if you have this spec. Medium greens show continued strength as well with quotes now sitting as high as $0.47/lb USD FOB farm, and new crop values are being explored. Red lentils remain stable at $0.35-$0.36/lb Fob farm with some delivered plant premiums available in southern Sask. New crop values for all lentils are being shown, with large greens at $0.50/lb, small greens at $0.45/lb, and medium greens at $0.34-36/lb USD – all FOB farm with Act of God. New crop red lentil bids have been slower to come out but have started at $0.30/lb on a DDC. If your farm is considering adding green lentils to your rotation, note that seed is in high demand so reach out to your merchant to source certified seed before supplies run out.
Indian chickpea rabi planting is underway at a steady pace and Canadian exports have started to pick up with the largest buyer being the US. There have also been some volumes moving into India that would be considered early given historical shipments. This could affect the long game of value as stocks deplete. Mexico and India are seeing high domestic prices compared to other crops which could lead to increased grower interest. Conversation around new crop has becoming more frequent for North American growers and although producers are starting the conversation, buyers are still hesitant to offer much for firm values. Spot bids are unchanged from last week hovering around $0.52/lb FOB farm with freight and sizing sensitivity for Dec-Jan movement. New crop indications are around $0.45/lb FOB farm Sept-Dec with an AOG. Still lots of price discoveries happening here and only a few contracts. Feed and sample product are unchanged as well, with bids around $0.35/lb FOB farm depending on the down-grading factor.
Flax markets continue to see pressure and prices have softened from where they were only a couple of weeks ago. Bids now range from $15.50 to $16.00/bu for the most part but targets closer to $17.00/bu may be entertained for 2024 shipping as many buyers have filled nearby positions. The US has been the biggest importer of Canadian flax at roughly 6800 tonnes, with China only contributing 2300 tonnes to our export program in September. Reports on the Kazakh flax harvest have been limited thus far, so it’s uncertain if the wet weather has caused any yield or quality issues. There seems to be no sense of urgency in the market at this stage, but sporadic small pockets of demand seem to pop up from time to time. For those with off-grade flax, we have seen some purchase demand, so talk to your Rayglen merchant for marketing options.
The oat market remains subdued, with limited activity in bids and trade this week. Buyers appear adequately supplied at the moment, preventing any significant price spikes, and we can still find a bit of old crop in the bin. Spot market milling quality bids are in the range of $5.00 to $5.25 per bushel, delivered into the plant. New crop bids have emerged around $5.00-$5.50/bu delivered for glyphosate-free milling quality oats; higher values are seen for late 2025 shipment deadlines. So far, this has garnered minimal interest from producers, but it has started the discussion. Those with firm sales targets in mind for either old or new crop are encouraged to reach out to post them on firm offer.
Soybean markets have been reacting to slow seeding in Brazil and the ongoing concerns on Argentina supply. Argentina is holding back exports due to replacement cost due to a weaker currency and higher soybean prices. Brazil has some reseeding taking place in the northern part of the country and other areas are having concerns caused by heavy rains. This had soybeans making a nice rally towards the start of this week but has since seen a bit of a down trend today. This rally may be short lived as countries readjust their meal rations and the how the Brazilian crop will recover going forward. The local markets are paying $16.50 FOB farm for Nov-Dec movement.
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.