Yellow pea bids are still holding strong this week, but with US markets pulling back a bit, we could see a ceiling created for Canadian values. China and the US are currently the main importers of yellows, so there may be some downside potential as markets waiver and buyers show decent coverage for the time being. Green pea bids haven’t seen much change for a while as demand remains status quo, but more buying interest may be starting to shape up for later in the 2021/2022 crop year. Reports suggest India’s pea plantings, although at an early stage, are already outpacing the 5-year average due to favorable weather conditions. It remains uncertain if this will translate into increased acres, but the possibility is there. Current Canadian FOB farm bids remain the same as last week. Yellow peas are indicated at $18/bu in many areas, greens are priced at $16-16.50/bu and maples have seen trades hit $19/bu depending on location and variety. Buyers are also still showing some interest in new crop yellow peas; call your merchant if you have a target price in mind.
Minimal changes are seen in the wheat world this week as milling values remain supported and we continue to see a strong push for feed product. Feed trades are happening at the $11.00/bu FOB farm range in most areas for heavy and dry product. On the milling side of things, a #1, 13.5% protein or higher indication floats around $12.48/bu delivered central Sask today with delivery starting to push into the new year however. On the durum side of the market prices remain strong ranging from $20.00 – $22.00/bu for grades ranging from a #3 up to a #1. If interested in these prices, one would highly suggest calling in and talking to a Rayglen merchant as recent programs on durum seem to fill rather quick. Once the buyers obtain their desired tonnage; the bids slide off again so don’t miss the window!
Canola futures have been up and down this week, but January futures broke through the $1000 mark at time of writing, currently sitting at $1006/MT, an increase from $995/MT last week. Some buyers have already started to base their bids on the March futures which are also up this week to $990/MT. This puts local bids in the range of $22-$23/bushel depending on basis levels. With soy and palm oil markets showing strength, some weakness in canola futures may coming from expected shipping issues due to rail lines and roads being washed out in the recent BC storms. Despite this recent news, the outlook continues to be strong for canola moving forward.
The oats market has run sideways this week as $9/bu bids, or even slight better, stick around for #2 quality. If your quality is not quite up to snuff for a #2, it’s an easily obstacle to clear as bids for lower grade oats are still at very reasonable levels. So, get a good handle on what you have and take advantage while these all-time prices are available. Fall prices for next year’s oat crop are showing bids at $6/bu picked up on farm or better in some areas. New crop oat prices don’t carry an act of God clause protecting against production shortages, so the risk is higher than locking in crops like mustard, flax, or lentils where there is protection against shortfalls due to circumstances out of your control. At least these strong prices lend to the belief that this oats market may have turned a corner against the lower price’s that carried on at for quite some time. Hopefully the health food craze of oat milk is here to stay!
Lentil bids remain relatively unchanged from last week, but now concerns over possible shipping delays due to flooding and rail disasters in British Columbia creep into mind. Red lentils continue to trade in the 44-45 cent/lb delivered range for Jan-Mar movement, with buyers content to trickle product in and unwilling to chase sales. Green lentils experienced a small, but welcomed, increase in demand this week as we see a few more buyers asking about small and large greens. Large green bids are indicated as high as 63-64 cents/lb delivered plant for #1 quality, while #2’s are bid at 58-60 cents/lb delivered. As mentioned, more interest is seen from the buy side in small greens, with #1 quality trading at 60 cents/lb FOB farm in many areas. Lentil markets continue to trade hand to mouth with most buyers searching for limited tonnage. Take advantage of these opportunities when they pop up.
The barley market continues to plug along this week with little change. Movement, for the most part, is getting pushed into the new year, but values remain historically strong for both feed and malt. Southeast Saskatchewan feed barley continues to see the strongest bids for “premium” quality compared to the rest of the province, with one buyer looking for product at 50lbs and max 13.5% moisture. Growers with these specs can expect to capture bids in the $9.25/bu range FOB farm for Jan-Mar movement. “Regular” feed barley is trading anywhere from the low $8.00 range to as high as $8.75 in the right area. Malt barley continues to show strong values as well, trading between $10.00 – $11.00/bu FOB farm, pending freight costs, quality and quantity. We have buyers willing to purchase off spec malt as well, so be sure to have your grade sheets ready.
Soybean market buoys on hopefulness from the virtual meeting between U.S. President Biden and Chinese President Xi Jinping. Domestic US demand and edible oil global demand are also bolstering soybean market confidence. Local bids have been as high as $14.50 to $15.00 FOB farm, location dependent. Feed fabas continue to trade near $13.00/bu FOB farm, with #2 export quality trading $15.00/bu FOB farm. Dry bean carryover inventory continues to weigh over grower bids, but with that said, inventories remain in firm hands.
Canadian chickpea values are losing a little steam as recent US domestic trade volume begins to fill. Export buyers continue to indicate buying reluctance at current Canadian values. Around the globe, the next kabuli harvest will occur in Mexico and India. Mexico is set to begin in March sometime and India some time in Apr/May. Mexican acres are thought to be down and there is some indication that Indian acres may increase based on higher local values. Today, #2 OB large kabuli chickpeas are currently trading near $0.55-0.56/lb picked up, while sample grade is indicated at $0.47 to $0.48/lb picked up.
Flax prices are a mixed bag this week and while bids are holding strong for new year shipment, the pool of buyers willing to pay top end values is dwindling. The rally in flax prices seems to have slowed and with sideways pricing the last couple of weeks, it’s time look at what’s left in your bins. New crop values this week still linger between $24-$25/bu picked up with an act of God. Yellow flax also remains strong with bids seen on old and new crop catered to variety. Call your Rayglen merchant to discuss pricing options. The strongest demand for flax has been coming out of the US, however, the volume of demand is getting thinner and once the US is satisfied with their volume, business will have to shift. Exports to China have been limited as Canadian values are too high. Analysts still question whether Canada is pricing themselves out of other global markets such as China and the EU.
There is not much different to talk about this week on the mustard front. Everybody in the mustard world knows what’s happening and record prices continue to trade. We are now seeing yellow bid at the $1.20/lb level FOB farm, with buyers also willing to entertain brown mustard at similar values. Oriental continues strong and would likely trade around the 80-85 cent mark for Forge or Vulcan type, with some buyers even willing to entertain Cutlass variety at those levels. We are now seeing new crop acres being booked and grower targets rolling in with buyers looking at all reasonable offers. These prices look outstanding and include an act of God. Please be aware of the seed situation as it is critical to find a pure supply. Talk to us about all types of mustard seed delivered to your yard as we have been delivering product to farm for years and make it as easy as possible for you.
The canaryseed market remains unchanged this week as buyers and sellers are in a “standoff” situation and neither are budging. Growers continue to hold out for higher values, similar to the ones seen earlier in the year, while buyers are content bidding $0.49-$0.50/lb FOB farm whether they buy or not. New crop bids are still quoted around $0.35/lb FOB farm or $0.36/lb delivered plant today. Trade remains slow, but acres are being booked, so if you’re on the fence, now may be the time to lock in 10bpa with an act of God at these historically strong values before buyers cover their needs. As always, firm targets are a great way to show the market what you have available. Targets have and continue to be an effective marketing tool over the past few months.
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.