Barley markets continue to post some exceptionally great values despite additional unit trains of corn hitting feed lot alley. We are still seeing a widespread in bids depending on area, but markets are strong, and product continues to trade anywhere from $7.25 up to $8.25/bu FOB farm; better bids are seen the closer you get to feed lot alley. Delivery windows are posted as Dec – March for the most part due to continued hurdles on the freight side of things, but the odd opportunity is available for quicker shipment at a discounted value. Although we do not have any firm pricing for new crop feed barley, indications are anywhere between $100 – $120/MT less then spot price today. These are some great values to consider for the 2023 growing season. The malt side remains generally inactive, but if you’re considering seeding malt this coming year, we highly suggest to review this document provided by CMBTC, which gives some insight as to what varieties maltsters will be looking for: https://cmbtc.com/wp-content/uploads/2022/11/CMBTC-2023-24-Malting-Barley-Recommended-List.pdf. We all know too well that new varieties come along and push the old boys out, and it seems some of the trusted and true leaders, such as Metcalfe and Copeland, are ending their reign as kings of the market. The purposed successors show great potential boasting yields close to, if not on par with feed varieties. All growers may want to consider switching things up, whether planting feed or malt, as this can opens another avenue for sales, especially considering recent feed barley pricing. Call to discuss seed purchases!
The oat market remains flatlined again this week with the majority of buyers still content with what they have on the books so far. There is the odd posted bid for delivery into eastern Saskatchewan and Manitoba available for growers looking to make a sale with values ranging anywhere from $4.50 up to $5.50/bu for springtime delivery. If you have a target value in mind and your specs are good, tossing out a firm offer today makes sense as we continue to see sporadic, “one off,” purchases. Indications on new crop have started to come out as well, and bids range around $5.50/bu delivered for glyphosate free #2CW oats. If this year continues on like the past few years, we suggest getting something locked in at these prices as buyers now seem to be able to buy enough product on production contracts to hold them over for extended periods of time.
The pea market trends sideways again this week for yellows and greens, however, maple peas remain strong and show quite the premium to other classes. Current maple pea bids on maples range from $15.00 – 18.00/bu FOB, depending on variety, and producers should give their merchant a call to discuss movement options and varieties preferences. Yellow pea bids remain at $12.50 – 13.00/bu, while green peas continue to boast a premium over yellows at $13.50 – 14.00/bu picked up on farm. Opportunities on higher bleach green peas and feed peas are present, ranging from $12.00 – 13.00/bu depending on downgrading specs. Looking overseas, India’s pea planting is currently down due to prices dropping, however, it is still uncertain if this will encourage a reduction in the pea tariffs or not. China’s demand is also slow going, which is why we are seeing some lack luster Canadian bids at the moment.
Canaryseed prices are sideways for another week with 41 cents/lb picked up on farm still being the top end. Reports coming out of Argentina suggest their planted canary crop is up 4% compared to last year, however, yield estimates are not available yet. Usually there is a bump in fall shipments to Europe, but inventories in Thunder Bay are not reflecting that this year. The flow of canaryseed shipments is steady and if there is going to be a spring rally, indications have yet to be seen. If StatsCan numbers are correct, supplies will be tight, and this could offer support throughout the year. We do have an offer system, so call your Rayglen merchant if you have a target in mind.
Flax pricing is down compared to last week with bids indicated at $18-$19/bu picked up on farm for shipping in the new year. If exports remain quiet, Canadian flax supplies could get heavy, and this is turning into a concern. Thus far, most of the 2022 harvest has made its way into the US. So far, there are no signals showing any urgency for our flax to head overseas. Flax supplies heading to China from Kazakhstan have been aggressive as they’re able to purchase much cheaper than current Canadian values, which takes away that avenue for our product. Imports by the EU have been steady to quiet with supplies coming from the Black Sea region. If Canadian flax remains uncompetitive, ending stocks will weigh on the market over a longer period of time.
Stability is the theme for another week in chickpea markets. Globally, initial details of the Indian Rabi planting indicate chickpea acres could be reduced from the previous year and seeding is slightly ahead of last year’s pace. Values in India have maintained a strong tone to support that speculation. Australia is reporting lower export numbers (mostly Desi’s) compared to their production, which is not typical. If accurate, this could translate to higher carry over and put pressure on Asia to find supply. Current Canadian bids are still quoted around $0.55/lb FOB farm basis #2 spec with max 10% 7mms. There are markets for higher percentages of small sizes at a slight reduction in value. Feed and sample values are still coming in at $0.30-$0.35/lb depending on the down grading factors. Planting chickpeas in the coming year and need seed? Call us for details on good quality seed delivered to your yard.
Spot mustard markets continue to hold strong and steady, but the new crop market has us a bit concerned to be honest. We have been booking new crop acres at a steady pace, and now worry is creeping in that prices may slip a bit. Old crop bids are indicated at $1.20/lb for yellow, $1.20/lb for oriental, and $1.15/lb for brown. Shipping windows remain fairly close in, and we’re still able to contract for movement before year’s end if needed, but we are running out of time there too. If you have a target price in mind, just let your merchant know as firm offers continue to grab attention. New crop pricing remains at $0.90/lb for yellow, while brown has started to slip a bit and sits around $0.84/lb. Oriental has taken a bit of a step back as growers make sales, now quoted at $0.90/lb on a case-by-case basis. All new crop contracts come with a full act of God on the first 10bu/ac. Speak with your merchant on movement options and firm pricing opportunities. We also have a good selection of certified mustard seed with treatment options and free delivery to farm available.
The wheat market is still a little scattered as it’s seeing political pressure and expectations of an uptick in supply. Couple that with the UN and Russia brokering a deal which allows Ukrainian product to continue flowing from the Black Sea region for another four months, and this should allow for stocks to bulk up a bit around the world, possibly giving the market a bit of a breather. Bids on a #1, 13.5% pro. red spring continue to hover around $11.80/bu delivered in, give or take depending on movement. Feed values continue to hold strength with bids ranging around $10.50-$11/bu depending on freight. Durum bids continue to hover around $13.75/bu delivered in, but buyers are open to seeing offers so give our Rayglen merchant a call.
Lentil markets continue to hold steady for the most part this week, especially when compared to other markets, which seem to be softening. A few buyers are stilling purchasing reds at 35 cents/lb delivered for Dec-Jan movement, while large greens are still trading in the 50-52 cent/lb range depending on grade, location, and movement date. Small greens lentils show values closer to 48-49 cents/lb today, but a few offers have traded higher. Markets seem to be patiently waiting for more information regarding Australian production numbers and grades. Compared to other markets this week, one has to wonder if lentils will be next to lose value or if they will remain on their own little protected island.
Soybean prices are getting a boost due to the potential multi-year effect of La Niña on Southern Brazilian and Argentinian production. This is tempered by an increase in Chinese COVID cases, and its impact on Chinese purchasing demand. Local bids are location dependent and range from $16.75-$17.25/bu FOB farm. Dry bean prices are drifting sideways as export demand remains lack luster. Export quality fabas are showing strong bids as Aussie quality concerns get hashed out. Feed quality fabas are being supported by pet food values. Local bids on export quality #2 faba are in the range of $13.00-$13.50/bu FOB farm and feed quality values are near $10.00-$10.50/bu FOB farm location dependent.
Canola markets continue their downward trajectory despite gains across the soy complex at the time of writing. It is reported that losses in crude oil provided spillover weakness in canola futures, which have now hit their lowest value in about 2 months. Reports suggest that speculators continue to sit comfortably on the sell side of the market, which doesn’t bolster confidence in either. Today, January futures show losses just under $5/MT while March futures show losses just over $5/MT, putting values at roughly $830/MT and $824/MT respectively. These numbers have delivered plant bids penciling out to around $19-$19.50/bu delivered depending on local basis levels and location. New crop canola contracts are being offered now at very attractive levels – call your merchant for details.
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.