Chickpea markets are flatline for another week. As the days continue with no pipeline of business out of Canada, other countries seed and harvest chickpea crops that can sustain needs typically filled by Canadian origin. Buyers are not holding as large of a stockpile as they usually do, and the trickle-down effect is adding to the stalled market. The loudest marketing strategy from Canadian growers is to “hold out for higher prices”, but it would go amiss to ignore that today’s values are still well above average and in comparison, to other years, a sell point. On the brighter side of things, you can store a dry chickpea and not worry too much about quality if you’re wanting to wait for higher market values. Current crop #2 values hover around $0.58-$0.59/lb FOB farm for Nov.-Dec., while sample grade is bid at $0.47-$0.48/lb FOB farm. No bids yet on new crop, but buyers are always interested in hearing where they need to be to make it work. Call if you want to set a target and test the market.
Canary seed markets remain much the same as the previous couple of weeks. Old crop is currently trading around $0.51/lb FOB farm for movement pushing into the new year. Demand does not seem to be very strong however, so if this is a price you are considering, we would highly suggest acting on these values before needs are filled. On the new crop side of things, you can respectfully attain $0.35/lb FOB farm with an Act of God in most locations. This is a great starting point to lock in some product for 2022 harvest. When talking with buyers the general theme seems to be “end user demand is virtually non-existent at this time”. That said, locking in some product at these values today makes sense. One would expect seed to be in short supply this year, so once again we would suggest starting the sourcing process ASAP. As always, Rayglen is here to help you find all types of seed.
We are still a month away from the final StatsCan estimate, but we can expect that both yellow and green pea supplies drop further. Australia’s and Ukraine’s prices are weaker compared to the North American market; therefore, we will continue to have oversea markets importing from these countries based on cost advantage. It has also been reported that India’s recent rains will provide good moisture for their planting season, which will hold back demand. Current Canadian bids on yellow peas are at $17-$18/bu picked up, mainly supported by US markets. Green peas remain subdued at $16-$16.50/bu picked up. Maple peas also continue to be priced between $18-$19/bu picked up. New crop values have begun to pop up for yellow peas and are currently indicated at $12-$13/bu FOB farm with an act of God.
Flax pricing remains strong into the new year. Values of $45.00/bu picked up are still available this week on brown, while yellow flax gains some strength having targets trigger at $60.00/bu FOB. Targets on new crop brown flax at $24.00/bu and yellow flax at $30/bu can also be found with a full act of God. Call the office for details. Chinese imports recovered somewhat in the last 3 months, however the Canadian share of that market dropped significantly due to lack of supply and freight costs. This could raise concerns in the future as to whether or not the shift in trade flow will become more permanent. North America has had the sharpest gains in flax recently and is taking off from global markets. So, while the US is representing the highest demand right now there will also be a limit to what is needed. The risk on the table remains; values could pull back and be competitive to the Black Sea region.
The barley market is still holding up at impressive levels this past week. All the corn from the US that was supposed to wash over barley prices in October has not really come to fruition at this point and barley still remains highly sought after. We are still getting bids ranging from $8 picked up on farm to as high as $8.75/bu in the Southeast corner of Sask. for heavier and very dry product heading south. Most areas comfortably see bids at $8.25/bu picked up on farm and are still getting movement prior to Christmas at this juncture, though that window is closing. Malting bids are showing $10.50/bu picked up on farm, for not the greatest malting quality, so opportunities are there for off spec malt.
The oat market continues to move in the right direction, up. Bids on milling quality sit around $9.25/bu delivered to plant for movement by the end of this year and dipping into 2022. Strong pricing support continues to show for this product due to limited production this year. Best bids are likely to fall in the Southeastern part of Sask. and into Manitoba heading out to the processors. That being said, buyers are open to all locations so show your Rayglen merchant what you have. Moving over to feed, buyer bids are loosely indicated around $8/bu picked up on the farm on dry, heavy (40lbs plus) product. Looking forward to next year, buyer bids are starting to come in on new crop sitting in around that $6.00/bu mark.
While the November canola futures continue their wild swings and near their expiration date, we focus on the January futures that physical buyers are now trading off. The January futures are at $986/MT at time of writing, reflecting a $26/MT increase from the same time last week. Helped along by vegetable oil prices and strong domestic demand, canola hasn’t shown any signs of slowing down just yet. Elevator deliveries are slowing down as harvest deliveries wind down and producers show a reluctance to sell in the near term. Despite new crop values being out there in the $16-$17/bu range, growers are not rushing to sign any canola contracts that far out after the difficult growing season we just endured.
Mustard is still showing strong momentum this week. We are seeing yellow trade at or above $1/lb FOB, with buyers also willing to entertain brown mustard at similar levels, around $1/lb. Oriental lags slightly, now quoted around the 70-cent mark for Forge or Vulcan type, with Cutlass in the 60’s. It’s very important to call your merchant these days and talk about a marketing strategy for your mustard. It is likely beneficial to market your product in the form of an offer to secure the highest value. These values are very difficult to ignore, and now new crop has started to be talked about. Some new crop bids have appeared at record high levels. Again, these prices look absolutely phenomenal including an act of God. Mustard seed sales have started early and are starting to pick up. If mustard is an option for you, it is critical to find a pure supply. Talk to us about all types of mustard seed delivered to your yard. We have been delivering product to farm for years and make it as easy as possible for you.
Wheat continues to show strong pricing values even though the futures market on wheat has taken a bit of a knock yesterday and today. Price holds steady around that $12.35/bu delivered in the new year into Central Sask. on a #1 hard red spring wheat with a 13.5% protein. Producers looking for the protein premiums may find themselves hard pressed as this seems to be a general price to all #1 product. Those with lower protein are finding great value for their product without being hit with discounts. Moving your wheat into the feed lots? We now see $11/bu picked up on the farm catching some traction. Durum has started to gain a little steam again from a blip near the tail end of last week with #1 CWAD prices pulling around $21.50 – $22/bu delivered plant for movement into the new year in Southeast Sask. Off grade qualities are also in demand so give your Rayglen merchant a call for pricing in your area. New crop durum bids have started to roll out in SE Sask. with $13-$13.50/bu trading in the Fall of 2022 on target for #1 CWAD.
Soybean futures have largely traded sideways for the past week. US soybean harvest is near 79% complete vs 86% this time last year. US Midwest weather forecast seems favorable for harvest progress. There are some private early indications that the US soybean crop production estimates are getting bigger. Unprecedented rain in Central China’s Henan Province last week has raised concerns for China’s domestic food supply as the province is one of China’s leading grain producers. Local bids have been as high as $14.50 to $15.00 FOB farm location dependent. Faba bean prices remain supported by an overall strong feed complex. Export faba business will be reduced this season based on strong international competition and lower domestic quality. Feed quality bids are near $13/bu FOB farm, and #2 export quality is hovering near $15/bu FOB. North American dry bean supplies are comfortably in line with 5-year volumes due to large carryover from 2020. Bids remain supported based on measured farmer selling.
The green lentil market has seen some renewed interest this week for #1 quality. Values remain below previous highs but are still historically strong. Indicated bids are now showing 60-61 cents/lb FOB farm for true #1 quality. We continue to see some demand for #2 quality with bids in the 58-59 cent FOB farm range this week. Small greens are sitting between 58-59 cent FOB farm as well. Red Lentils are quiet again this week with bids at 45 cents FOB for Dec.-Jan., and 46 cents FOB farm for Jan.-Feb. movement. The red market is seeing pressure from a large crop out of Australia and the Indian market not wanting to pay the high prices the Canadian market is asking. Reports suggest that not only does Australia have a large crop, but they are also willing to sell at levels below the current Canadian ask. Reds could be quiet over the next few months until we find the true amount and quality of the Australian crop.
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.