The chickpea market has started to tail off a bit in the past couple of weeks. Product has become scarce as the yield was less than stellar for the majority of the chickpea growing region. To add to this, much of what was not already contracted had to be earmarked for seed. Current bid indications for product in the bin are floating around 60 cents or a little better at the yard for #2 quality. If you are still sitting on old crop, the price has been waning and moving them promptly is probably the right call. New crop contracts have trickled off on price as well as bids have moved into the high thirties picked up in the yard for #2 quality. Contracts still include Act of God and will price around 10bu/ac for movement before the finish of 2018.
The flax market has been very still and is sitting around $12.50 FOB for milling quality. For #1 quality it has been trading anywhere from $12.00 to $12.50 per bushel delivered to plant. There is nothing on new crop at the moment, but contracts should be coming out sometime in 2018. Yellow Flax prices have been very quiet and if you can find a price you’re probably looking at $14.00 per bushel. The flax market in Europe has been mostly lost because of concerns regarding GMO’s. These concerns have yet to be proven, but has put a damper on sales. It is unlikely that prices on flax are going up anytime soon, but keep in touch with your merchant on small rallies that may take place.
Steady as it goes in the canaryseed market. The prices have not fluctuated and are still range bound between 20 to 21c/lb FOB the farm. The 2017/2018 stocks are bit tighter than the previous year, which could add a price bump in early 2018. Thus far, canary has been following seasonal patterns in price. The peak for selling is usually in late February, but that all depends on supply levels. They are estimating final stocks to be around 45,000 to 50,000 tonnes versus 60,000 to 65,000 tonnes from last year. We will wait and see what the future brings.
The initial chaos that was caused by the Indian tariff has died down slightly and bids have stabilized. Yellow pea bids are at $6.75/bu delivered and green peas are at $8.00/bu delivered. We also have some good opportunities on feed peas at $7-7.50/bu delivered. It has been quite some time since Canadian peas were exported into Spain as feed and for this to happen our prices need to be low and European prices must be strong. Looking at our prices, we just need the Spanish feed markets to strengthen a bit more before these trades will occur. India’s planting is going well and if the momentum continues it will decrease the chances of the tariff having a quick removal. Therefore, yellow peas are likely to stay quiet with green peas, maybe still having some upside potential as other destinations are possible.
The feed barley market is making a bit of a move this week. We are seeing buyers more interested in $4.00/bu barley offers this week. This price level is not for quick movement, but more like January- March delivery. Buyers might have some room for a quicker delivery, but not likely at that $4.00/bu FOB farm level. Offers are definitely the way to hit a high in this market so talk with your merchant. Malt barley has been very flat, nothing much happening. With $4.00/bu FOB farm floating around in certain areas, there might be more malt barley entering the feed market than before.
Still very little news in the oats market as we move closer to December. #2 CW oats values remain in the $2.50/bu picked up in the yard range. This is freight sensitive with better prices being seen the further south the oats are located. We are seeing solid demand for feed oats as of late. Indications out of northern Saskatchewan is around $2.25/bu picked up in the yard with opportunities for slightly higher further south. They are willing to look at heated/light feed oats as well, so if you have some on farm give us a call to get a firm price in your area.
Lentils remain quiet again this week. Reds are trading at 17¢/lb picked up for January movement. Large greens are 27-30¢/lb for number 2 and small greens are 27¢ for number 1. Market will remain quiet until things in India become clearer. There is still talk that India is going to impose a 25% to 30% tariff, but they have not made a final decision. There is not much happening in the world to make lentil prices change, even if Australia has weather problems there are plenty of good quality reds available to buy, and any rain now should only slightly effect the yields. Most are farmers are willing to sit on their red lentils, but most are starting to think about marketing their large greens as $16.20 to $18.00 per bushel, as it is still a good price to sell at to make some money. Over the last eight years large green lentils average 27¢ approximately across the board for all grades. This based on a couple buyer’s prices over the last eight years on large greens.
Wheat markets have held stable on the feed side of things this past week. Feed wheat values are still being indicated at 5.00/bu picked up on farm for low vomi product. Movement is looking more into Jan/Feb for these values, but growers still holding on to feed wheat should look at this as an opportunity to hedge more product. Protein issues for spring wheat could result in more product going into the feed market, as protein discounts are knocking milling values down drastically in some cases. Durum values haven’t seen allot of change this past week, but movement with some buyers is getting pushed out to March/April. Values have traded as high as 8.25/bu picked up on farm depending on location and quality. Growers that haven’t moved much product may want to consider getting some on the books as movement will continue to get pushed further out with buyers slowly getting their needs covered.
Soybeans are getting a longer look as Canadian farmers are planning next season’s crop. Recent changes in the pulse market are one of the factors contributing to a forecast of increased soybean acres across the prairies. Brazil and Argentina soybean planting has progressed to 84% and 34% respectively. It is anticipated that US farmers will, for the first time, plant more soybeans than corn in 2018. As stated last week, US exports will play the major role in market direction this year. It is forecasted that Chinese imports will continue to support the market. As world soybean supplies have grown in recent years, markets have remained defiantly buoyant. This has been largely attributed to continued growth in imports from China; this import trend is forecasted to continue. Local soybean bids are $10.90/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.
Canola markets have made a small rally today after losses in the Canadian dollar. As always, when the CAD drops, canola and its bi-products become more attractive to importers and crush margins improve. January finished its trading session at $510.20/MT, up $1.50/MT, while March moved $1.70/MT to the positive and ending the day at $519.10/MT. Basis levels remain relatively unchanged, ranging from $10/MT under to $25/MT under delivered to plant. This pits bids at roughly $11.30/bu delivered and in the right freight area, up to $11.00/bu FOB farm. Areas grabbing the highest values are in the Northwest and Southeast. Call your merchant with area and quantity and/or to throw out a firm target.
The mustard market continues to be a bright spot in commodity trading over the past few weeks. Spot prices are basically around the highs of the year, and trading has been steady. The spot prices for yellow and brown continue to lead the way for bids right now, with buyers showing interest at 43-44 cents per pound picked up in the yard for movement in the new year. Oriental sits with bids at 32 to 34 cent range depending on variety. New crop mustard trading has been brisk. If you are considering mustard as a new crop option, the prices and contracts are attractive with 32 to 34 cents on Oriental, 35 to 37 cents on brown, and 38 to 40 cents on yellow. Contracts include an Act of God and are priced based FOB your farm. All the new crop contracts are price dependent on delivery period. We have seed available delivered to your yard also, 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.