Chickpea markets are buzzing about a new food tender announced this week and buyers are looking to sellers for targets. Price expectations are likely met somewhere around $0.64-$0.65/lb FOB farm for a #2 or better Kabuli in most areas of Western Canada. While this may not be the level growers had in mind it should not be ignored that these values are almost double from a few months ago. Feed markets are still hot at $0.47/lb FOB farm and while still quite low, new crop discussions have already started. Call if you want to set a target for the next couple weeks, or to discuss seed purchases/sales and new crop opportunities.
Yellow peas continue to lead the pack in terms of pricing this week. Buyers have increased bids slightly with yellows now priced at $16.50 -$17.00/bu picked up. For the most part, these values carry a slightly pushed out delivery window; quoted as December – January 2022. Green peas remain bid at $16.00/bu FOB, but we did have a couple location specific firm targets hit at $16.50/bu last week. Maple pea markets have been quiet in light trade with values sitting around $18/bu FOB farm. We do have some seed available for purchase, but the supply is going quickly. Call your merchant regarding seed and where to start your new crop offers.
The oat market remains strong and continues to make gains week after week. There is high demand for milling quality with prices now posted around $7.75/bu delivered for October – December. If you can hold product into the new year, bids have been posted over $8.00/bu delivered. Historically, these are huge prices, but if you’re not quite satisfied, posting a firm target is always an option. If you don’t happen to have milling quality, the feed market continues to show very strong bids. Focus remains on bushel weight into the feed market, which is why having your samples graded is beneficial in helping us find the best bid available.
The barley world remains much the same this week. Feed barley continues to trigger in that $7.50 – $8.00/bu FOB farm range depending on location and shipment timeline. The malt side remains quieter, but recent chatter shows some buyers are interested in purchasing. Firm bids are scarce, but we have had indications in the $10.00/bu range cross our plate. If you’re sitting with malt barley on farm this makes it a perfect time to use the target system and show the market what you’re looking for. Buyers won’t typically buy any malt without seeing specs and/or physical samples, so we highly suggest getting that process started to avoid delay when firm bids become available. Rumblings of new crop feed barley have started. Bids hover around $5.50/bu FOB farm without an act of God clause. If these values are of interest, call your merchant to secure a firm bid.
Flax prices are up this week and remain aggressive. Prices range anywhere from $42-$45.00/bu FOB depending on movement timeline and location. So, what is the risk for holding and not selling at these price levels? The US could import Russian flax just as China is doing right now. US flax processors could get larger volumes of flax brought in by rail or barge from the Black Sea region instead of smaller lots from Canada. If prices continue to climb these scenarios could play out despite logistical costs. Yellow flax prices are sitting at $45.00/bu picked up. We have started to see early new crop pricing available along with seed bookings taking place this week. As supply is smaller this year, growers may want to consider making seed purchases early before sellers either run out or opt to make sales into these wild commercial markets.
The wheat market continues to hold its own with support coming from yesterday’s USDA report. Wheat numbers for each country were pegged close to where they had been predicted in general, less production and carryout. Canadian numbers shrank a bit more than anticipated though, roughly 2MMT from the previous report. As such, we continue to see price support. Milling price on a #1 HRSW with a 13.5% protein sits around $11.50/bu delivered for December movement. Action into the feed market is as strong as ever with $10.25-$10.75/bu picked up actively trading. Durum prices continue to hold strong as well with $21/bu delivered in and in some cases FOB farm triggering. As always, if you have a price point in mind, let your merchant know and they can put up a target for you.
Chicago soy futures moderated on increased crop production forecasts. There is some optimism on the horizon as we get closer to the typical season when China buys in preparation for January New Year. Local bids have been as high as $14.00 to $14.25/bu FOB farm with posted bids being thin. Canadian faba yields are below trendline this year. The prospects of a successful Aussie faba crop and varied Canadian quality pose as headwinds for Canadian producers. Feed quality bids are near $13/bu FOB farm and #2 export quality hovering near $15/bu FOB. Dry bean prices continue to experience strength through harvest. However, prices are anticipated to soften in an effort to slow delivery pace.
The Canary market has been quieter this week as bids from some buyers have tapered off. That said, we still have one or two opportunities in the mid 50 cent/lb range picked up on farm. Reports that Canary buyers are reworking their mix on product due to lack of available supply for the near term has taken the wind out of the sails for now. This might just be a marketing lull as things build up for future sales in the niche world that is Canary pricing, but it’s also possible we have seen the highs and this market will trend sideways and slowly slip through the season. No one really knows what will happen but being partially sold at this point is a good place to be if you’ve been lucky enough to make some sales at 50c/lb or higher.
The canola market has taken a big step backwards this week for the first time in a while. November canola futures recovered a small amount today and sit at $902/MT, down from the same time last week when they were up to $925/MT. Buyers have begun to look to January futures for pricing, now down to $893/MT, in comparison to $912/MT last week. One of the big reasons for the drop in pricing was a bearish feeling in the soy market after the updated USDA report. US and world soybeans stocks were both increased in the report. Despite all of that, local basis levels and cash bids remain historically strong and are worth keeping a close eye on.
The mustard market has been a wild ride as of late. Rumors of some very high-priced trades continue as some companies require short term coverage. With this in mind, keep giving your merchant offers for product at any movement window. The posted price we have right now shows yellow at 80 cents/lb for Oct. to December movement. Brown mustard sits at 70 to 75 cents and Oriental at 45-48 cents/lb depending on movement. As these prices continue to climb it may be time to think about booking your seed as the price could increase in relation to sale prices. We do our best to keep costs down in this environment. Call us about treated and un-treated options with delivery to your yard. We even have access to the new brown hybrid variety.
Lentil markets are unchanged for another week. This sideways trend is based on oversea trades remaining slow. At these levels no one wants to take a risk on being over bought, meaning buyers are comfortable to take a hand to mouth approach. Reds remain at 47-48 cents/lb FOB farm as a high, with many bids coming in under those values. Large greens are still trading between 60 to 62 cents FOB farm in most cases, but there may be a small opportunity to trade for slightly higher in Western SK. Small greens are in light trade but bid at 57-59 cents/lb FOB farm. What does the future have in store? Reds could see some more downside pressure on news of a good looking, larger than expected Australian crop. The lentil markets are a tough read in today’s environment but putting some sales on the book at these historically strong levels is likely not the worst idea.
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.