The weaker Canadian dollar, along with a decrease in soybean production continues to help canola pricing today. At the time of writing, the board sits at $865.40/MT, which puts us just shy of $20.00/bu in some cases after factoring local basis levels. Buyers remain aggressive in buying and are starting to lock in some 2023 tonnage as well. If you are looking for a bit stronger selling price, we would highly suggest calling in and placing a firm offer. Firm offers and targets continue to grab buyer attention and also make sure your product isn’t missed with the ever-changing canola values. You may not want to sell the whole farm out of canola right now, but generally speaking, locking in some tonnage at these prices is a smart move today.
Bids have seen a bit of an uptick in the pea market last week and seem to have held into this week. Yellow peas are trading at $12.50 – 13.00/bu picked up in most cases, while green peas are priced around 12.50/bu picked up, for max 3% bleach. Maple peas ticked up as well, now quoted around $14.00 – 14.50/bu FOB, depending on variety and freight costs. Offers continue to strike buyer interest over these past two weeks, so if you have a target in mind, let your merchant know. Green pea supplies will be tighter in both Canada and the US this year, so there may be more upside potential in this market. Pertaining to yellow peas, Chinese demand may be limited as their fractionation market seems to be mostly covered and their feed market will rely heavily on the direction of the soymeal market.
No big changes in canaryseed markets of late as bids continue to be quoted around 40 to 41 cents picked up on farm. Buyers and sellers continue to show little interest to push things either way so, the market remains at a standstill. All parties seem content to, for the most part, wait and see what the future brings. Supply looks reasonably tight this year, but there is some debate as to just how tight, with StatsCan leaving some questions unanswered (2022 yield?) that the analysts out there have not provided a lot of answers to. Once we have clarification on how much canary was actually produced this year, we should have a clearer picture of market direction. If you need to move canaryseed, current price options are decent, and movement shouldn’t be too dragged out. If you’re not in a hurry to sell, then there isn’t too much downside risk, and holding out to see how things unfold isn’t the worst plan today.
Canadian flax supplies are reporting a 37% increase over 2021 production, but so far there hasn’t been much volume exported in the 2022 crop year. Knowing these facts, we must come to the conclusion this is due to lack of demand rather than lack of supply. Weekly averages of shipments are far behind compared to last year and at this time of the year, more flax should be in the pipeline. Flax prices are sideways with indications of $20.00/bu FOB farm hitting our desk with shipment before the new year, and a slight carry in value for shipment after the new year; around $22.00/bu FOB. The Black Sea flax prices continue to slide, making them a cheaper option, and Canadian flax even less competitive on the world stage. The spread between European and Canadian values have discouraged any new trade recently and we believe patience will be key for those looking at making higher valued sales.
Chickpea activity is steady for another week with both growers and commercial markets buying and selling. Values for #2 Kabuli chickpeas have traded between $0.50-0.52/lb FOB farm with the latter offered for holding product into the Dec-Jan timeline. In addition, global markets are still active and seeing values equivalent to $0.505/lb FOB farm trading to Pakistan from US origins. These stocks are likely to have been bought well before today’s values or are an attempt to decrease high stock at any decent value. It should be noted that offers are still rolling in from both growers and commercial sellers and those seem to be the contracts that trigger. Still a lot of mixed reviews for 2022 production and this has resulted in kicking tires. Sellers that have a price in mind are able to sell at levels deemed tradable for both parties. Sample/feed quality is still valued at $0.28-$0.30/lb and there is always a home for it! Have seed to sell? Need to buy some for next year? Call the office to talk options.
Soybean futures lost ground due to a stronger USD, low inland water levels on key waterways, and decent harvesting conditions. Local bids are location dependent and range from $16.75-$17.25/bu FOB farm. Dry bean prices are beginning to firm up as the market passes through a period of somewhat typical seasonally normal price pressure. US yields have been reported as fairly strong, however the overall smaller planted acres will result in production levels that should be supportive for prices. Aussie faba production may be challenged by recent rains in Australia. Jury is still out as to the potential impact on faba production region. Local bids with export quality #2 faba bids being in the range of $13.00-$13.50/bu FOB farm and feed quality values are near $9.50-10.00/bu FOB farm location dependent.
Lentil trades are a little quieter to start the week compared to last, but values are still strong. Laird prices seem to have stabilized at 52-53 cents/lb FOB farm for #2 quality, while red lentils continue to see bids around 35-36 cents FOB depending on movement timeline. Purchasers continue the hunt for French green lentils this week, with suspected trade values at or near $1.00/lb. Please give us a call if you have any French greens on farm. Generally speaking, recent spikes seen in lentil values has been attributed to many factors. In large green markets, concerns over the Indian pigeon pea crop, lack of farmer selling, and a weaker Canadian dollar support values, while red lentil strength is mainly due to weather concerns in Australia and the possibility of poorer quality product; supply does not seem to be of concern.
Feed barley markets remain strong for another week despite some rumors of corn shipments making their way into feedlot alley. Shipping seems to be the biggest issue lately, as truck availability and rates pose hurdles to moving product. Therefore, movement is starting to get pushed out to the new year as most buyers have either filled or are unable to make short-term commitments. Prices vary considerably due to freight costs and freight lanes, and we see spreads of $1.00 a bushel or more from eastern Sask to western Sask. The major concern for barley going forward is substitution and whether or not buyers can find other commodities that are cheaper to fill their needs. With a good supply of oats and rye on farm, these may become a more viable options as the year progresses, but only time will tell.
Mustard markets continue showing strong options this week and although it seems we say the same thing every week, demand and prices remain strong. All varieties sit over the $1.00/lb mark FOB farm with yellow quoted the highest around the $1.15. In this market, firm targets remain a very popular choice for growers to sell their mustard. It is never too early start thinking about next planting season either and with that said, we have locked up our seed supply for the year. We have all varieties of seed, treated or untreated with free delivery to the farm. New crop mustard has just started to trade this week as well. We suggest growers keep in touch regarding 2023/2024 production contracts over the next few weeks. Again, a firm offer on this may be the way to go.
Wheat markets remain relatively unchanged compared to recent weeks. Indications for #1 milling quality is right around $11.50/bu FOB farm, but bids do not appear to be deep. In the same token, we are seeing feed wheat trade around that same value, if not a bit higher as you move west across the prairies. Growers may want to consider pursuing this market and making no dockage and/or worry of discount sales rather than a milling sale. Onto the durum side of things; there appears to be more life in recent days and much of that strength can be attributed to the weaker Canadian dollar. Posted pricing sits around the $14.00/bu delivered mark with the possibility of hitting that value FOB farm if you can hold out until the new year for some Jan – Feb delivery. Buyers are also starting to show interest in 2023 – 2024 durum in the same ballpark as spot pricing. If you have durum in the 2023 seeding plans, locking in some tonnage at these values just makes sense right now! Maybe don’t sell the farm, but 5 – 10% of what your low average expectancy is would be a great number to start.
The oat world remains a topic of (non) discussion this week. Milling spec bids are flat for the most part, topping out around $4.00/bu give or take pending freight. That said, some milling buyers have started to drop values further, with one indication coming in sub $3/bu. Will others follow suit? As we have quoted in previous weeks, given the average yield across the prairies, buyers are not jumping at the bit to purchase oats into an already over supplied market… for the time being anyways. Feed oats, however, seem to be sought after quite consistently and are quoted around that $4.00/bu FOB farm mark (virtually on par with milling in many cases) in anticipation of filling feedlots with a cheaper supply of product than barley. There are rumblings of corn starting to hit the feed lots as well, so current feed oats values may not last as long as one hopes. Although next planting season seems to be an eternity away, trying to lock in some 2023 – 2024 tonnage may not be a bad idea. Although we don’t have any firm values at this point, please let us know if you have a sell price in mind.
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.