The soybean market has shown signs of bullish sentiment recently. Several factors contribute to this, including planting delays in Brazil, reduced US production, and robust domestic crush. Bids for soybeans range from $15.50 to $16.00 per bushel, depending on the farm location. Dry bean bids are expected to receive late-season support from Mexican demand and reduced production but are currently burdened by carryover supplies from the previous crop. Canadian faba bean volumes are projected to decrease year-over-year, while feed-quality faba beans continue to benefit from pet food demand. Local bids for export-quality #2 faba beans range from $11.50 to $12.00 per bushel, and feed-quality values are around $10.00 to $10.50 per bushel, depending on the farm location.
Canola prices have faced challenges recently. Fortunately, the past week didn’t bring significant downward movement to the market, but after a brief period of positive movement, prices reverted to their levels from a week ago. Currently, prices remain above the floor of $700 per metric ton on the November futures, sitting at $710 per metric ton at the time of writing. These price fluctuations have largely followed soybean values, albeit with some lag. There is some talk of potential upside in oil futures, which could impact edible oils, but the outcome remains uncertain. Exports are still slow, and the market awaits new developments to bring positive changes. Spot prices vary from $15.25 to $16.10 per bushel depending on location, so it’s advisable to explore different options due to differences in basis levels.
The oat market has maintained relatively stable prices in recent weeks without exhibiting any significant price spikes or drops. This stability is due to higher estimated 2023 production and carryover from the previous year’s crop. Buyers seem to be able to secure their needs without straining their budgets and/or chasing high priced offers. For 2024 shipping windows, bids range from $5.00 to $5.50 per bushel delivered plant on #2CW oats. Feed values sit around $4.00/bu, but most purchasers require a certain weight spec. If you’re looking for local FOB farm bids, please contact your merchant with specs. New crop chatter has arisen with some purchasers predicting the release of 2024 production contracts shortly. At this stage, holding oats for a near term price increase doesn’t seem likely.
Barley still provides a strong option for grower sales, despite some softer bids. Although values may not match last year’s levels, today’s bids are still historically favourable. Most areas see a trade price of $6.00 per bushel FOB farm, with reasonable delivery terms. Current spot purchases align with or exceed the 5–10-year average, especially for feed values and are likely closer to malt averages. Corn continues to be pushed into the feedlots and in some cases is replacing barley entirely in the ration. It may be advisable to take advantage of values currently offered bids to hedge against further downfall. For malt pricing, it’s best to get grading done and source prices from there. Firm offers and targets are catching buyers’ attention, but extensive purchasing is not expected.
Pea markets continue to draw the interest of most buyers this week. While prices aren’t skyrocketing, purchases are happening at reasonable rates. Green peas are trading in the $16.00 to $16.50 per bushel range for good quality peas. For those with product outside #2 spec, buyers are also offering some strong bids for higher bleach green peas. Contact us with your grade and/or send us samples to start the marketing process. Yellow peas remain stable, with prices at $10.00 to $10.50 per bushel FOB farm, though some buyers are offering slightly higher delivered values. Posting a firm offer seems to be a good strategy to capture potential market fluctuations. Maple peas remain at the forefront of the pea market, consistently trading at prices in the mid-$20.00 per bushel range.
Chickpea markets have been eagerly awaiting official statistics from StatsCan for several months, and this week is no exception. The prevailing sentiment can be summed up as “hurry up and wait” for the December figures. However, it’s widely acknowledged that the carryover has been steadily decreasing, and supplies are expected to be tight for the 2023/24 season, as both Canada and the US are experiencing increased exports. One aspect that hasn’t received much attention is the difference in sizing methods between Canada and the US. Canada uses Imperial sizing, while the US employs the metric system. The variations in sizing can be significant, so when comparing production between the US and Canada, it’s essential to use a uniform unit of measurement. This information holds great significance and is crucial for the effective marketing of your production. Old crop chickpea market values currently average $0.54 per pound FOB farm for December/ January (equivalent to $0.40 per pound in USD), applicable primarily to chickpeas with max 15-20% 7mm size. Anything with a higher percentage of 7mm may be subject to discounts and can vary between different buyers. There are no new crop bids available yet, but it’s anticipated that there will be a significant increase in acreage planted. If you require seed, let us know sooner than later.
The flax market remains relatively stable this week, with prices hovering around $17.00 per bushel for on farm pickup. The movement timeframe can vary, so please reach out to our office for available options. Flax exports in August were below the five-year average, with the US being the primary destination. Reports from Kazakhstan earlier this month indicate that stocks are lower than the previous year, although these figures haven’t accounted for the delayed harvest due to heavy rains, which could affect quality. Analysts still anticipate reduced stocks from Kazakhstan, as the 2023 reports suggest that seeded acreage is lower compared to the previous year. Chinese buyers don’t seem overly concerned about stocks from major exporters, as prices remain stable.
Canaryseed prices remain largely unchanged from last week, at $0.44 per pound for October/November and $0.45 per pound for December/January. According to the latest Sask Ag Report, provincial yield averages for this year’s harvest are estimated at 20.80 bushels per acre. Looking at international markets, Canada reportedly exported 4,200 metric tons of canaryseed in August, marking the lowest August monthly total in well over 20 years. Mexico continues to be the largest buyer, with the US as the second-largest market. Analysts will closely monitor September’s export numbers to gauge whether the August figures indicate a sustained decline in demand. Given the decreasing prices of alternative birdseed substitutes, growers and buyers will be keenly observing the potential impact on canaryseed demand.
The wheat market has experienced a modest increase today. Milling red spring wheat bids are currently around $9.55 per bushel, give or take a nickel, delivered to Central Saskatchewan, assuming a 13.5% protein content. This increase in price is attributed to several factors, including unrest in the Middle East, decreased wheat production by SovEcon due to poor conditions, and approximately 2.49 million metric tons less wheat moved compared to the previous year, as reported by the European Commission. There is also an expectation that India may release some of their reserves to offset their challenging conditions, along with reducing aggressive import duties, especially during the holiday season. On the feed side, buyer bids continue to hover between $8.00 and $8.50 per bushel picked up from the farm, with prices increasing as you move closer to the feedlot alley.
The lentil market has shown some improvement this week. Red lentils are trading around the $0.36 per pound FOB range, possibly a bit higher in specific locations. Large green lentils are currently trading at $0.64 per pound FOB, with occasional offers reaching $0.65. Small green lentils are priced at $0.60 FOB. Some new crop small green lentil trades have been initiated, and we have limited availability for this program. Other lentil markets have not released new crop pricing yet, but it’s expected to be announced soon. For those planning to grow lentils this year, it’s advisable to secure your seed orders early, as certified seed supply may be limited. The recent uptick in red lentil prices is not fully understood, and it remains uncertain if this trend has depth, as not all companies are actively seeking red lentils. We will continue monitoring this over the next week.
Mustard prices continue to exhibit softness this week. Buyers are satisfied with production contract tonnage and report limited interest from overseas buyers this fall. Yellow mustard commands the highest pricing, in the mid to high $0.80’s per pound. Brown mustard bids currently sit at $0.68-$0.70, while oriental mustard is facing significant challenges, with prices in the $0.60’s per pound range, making it challenging to find sellers. If you’re considering a marketing strategy with offers, please reach out to us. Having firm targets in place may yield a slight premium, but buyers, in general, are not aggressively pursuing high value offers at this time. Mustard seed sales have commenced, and we have various options available, including treated and untreated seed with free delivery to the farm.
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.