Soybean futures are experiencing pressure due to cooling global trade forecasts, a stronger USD, inland waterway bottlenecks, and US harvest pressure. Local bids are location dependent and range from $16.75-$17.25/bu FOB farm. Dry beans are expected to have adequate, but not burdensome volumes harvested north and south of the border. Stateside, local bids are experiencing harvest pressure, but north of the line, the weak CAD has cushioned the pressure on local bids. As earlier stated, Canadian faba production will be on the lower end of the spectrum due to fewer planted acres. This has been somewhat supportive for 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. Competitive pressures from the larger Aussie faba crop are expected to contain domestic Canadian bids.
Barley trades continue to capture some great values, but nearby shipping windows are starting to fill up and movement is being pushed out. This doesn’t come as much of a shock given the historically strong values that are being posted for feed, which growers are taking advantage of daily. Today, bids across Saskatchewan sit anywhere from $7.00 – $8.00/bu FOB farm depending on freight and time frame of delivery; as is often the case, the further west the better. Alberta growers will likely see some higher values, possibly nearing $9/bu FOB farm in the south. Although the shipping windows are getting tighter and desired buyer delivery is now pushing into Jan – Mar, a positive carry in value should offset storage costs. If you have a “sell now price” in mind, firm offers continue to grab buyer attention. Malt bids are still periodically found, but buyers do not seem overly aggressive in pursuing any big lots at the moment, and for the most part, feed values remain just as competitive.
The pea market saw a bit of an uptick in pricing this week as our Canadian dollar continues to soften. Yellow pea targets are now triggering between $12.50 – 13.00/bu picked up with movement before the new year and some decent tonnage is being booked. Trying an offer at these levels is strongly recommended to see if freight works out in your area. Green peas had trades around $12.50/bu picked up throughout the week, based on max 3% bleach. We do have bids for higher bleach, we just need to know the percentage. Maple peas finally stepped off the $13 mark with trades at $13.50 – $14.50/bu, depending on variety. Offers have been getting quite a bit of buyer interest, so this is always an option if you have a target price in mind. As per reports, China started moving some peas into their fractionation market, which has increased their import needs; however, the feed market remains quiet. If their soymeal price increases, we may see trades into the feed market become more favourable.
The wheat market had a little push in pricing this past week with #1/#2 milling wheat now trading around $12.00/bu picked up based on 14.5% protein. We do have pricing available for lower protein wheat as well if you’re sitting on that type of product. The feed market also saw a bump in value with bids hovering around $10.50 – 11.00/bu picked up. Possibly the most interesting news this week has been rumors of $13.00/bu delivered milling durum for pushed out shipment. If you have a firm target in mind for any wheat or durum, let your merchant know as these are a great way to get top end bids in a rising market.
Flax pricing has taken a backseat this week due to limited demand. Russian and Kazakh flax going into China is priced well below Canadian flax values and this limits our export opportunities. With Russian flax pressuring the market, selling some flax before the new year deems difficult. If the US can find it’s footing on flax values, there could be increased opportunity for flax to move south. As of now, the flax market in Canada is still unstable and we could see pricing trend towards 2021 pre-drought conditions. If you are looking to move some flax, despite few little openings for prompt movement, call us to chat options.
Another sedentary week for chickpeas as harvest wraps up and growers assess what came off the field. Turkey and Russia have been exporting at levels lower than North America and will continue to do so throughout the 4th quarter. The situation in Pakistan has created an unstable financial market which leaves sellers uncertain about moving volumes to that destination, leaving more in the open market for now. As world supply diminishes, buyers will look to North America for supply. Price movement is expected to be less of a “spike” and more so “waves” of price increases. Markets are still paying $0.50/lb FOB farm for #2 Kabuli’s with Oct-Dec movement and off grade/sample quality values are at $0.30-0.35/lb. Rumors of $0.30/lb new crop #2 large Kabuli bids are around, but still too early to put a pin in it. Chickpeas have many homes with several grade requirements so best practice is to send your sample off for sizing and grading to understand what you have to market before you sell. Due diligence can save you time and frustration.
In lentils this week: “Green is the color, pulses are the game, buyers came together and paying is their aim. So, sell your lentils for realized gains, while using Rayglen as your trusted trading name.” – now that we’ve got that out of the way… Large green and small green lentils took a big jump in price this week with a 3-4 cent bump in the LGL market and a 5-cent gain in the SGL market. Currency is one of the reasons for the price increase as the Canadian dollar falls, and this means some trades are finally hitting the books for buyers. Red lentils remain stable at 32-32.5 cents/lb FOB in many locations this week with not an overwhelming amount of trade taking place. For now, it seems bids will remain relatively stable, but we must remember Australia is still selling their product into the market cheaper. Buyers continue to look for specialty/ niche market lentils such as French greens and belugas, which are quoted around 75 cents and 53 cents respectively. Keep in mind these are advertised values and we’ve seen firm offers trade higher. As currency will most likely continue to rise and fall, values overall may continue to be a little volatile. If you are still waiting to make your first sale, this is a good starting point.
Oat buyers have been making more calls on availability of product this week and we are even seeing some better bids. Feed values have been bid and trading at $4/bu FOB farm in far Eastern Sk and #2 CW oats have had trades around $4.50-4.75/bu FOB Farm. There was a tweet making it rounds of gluten free oats valued at $8/bu, but has not been confirmed with buyers. Thank you, Twitter. There is still good demand for feed oats into Southern Alberta with corn not being a great replacement, so current tone is expected to maintain. Production this year has been reported as relatively good thus far with dry and frost-free production. A little of talk around fusarium, but nothing major to disrupt the market.
Canaryseed has been pretty quiet as of late with bids continuing sideways around 40 cents picked up on farm, plus or minus a cent depending on area. Weakness in the Loonie and stronger pricing in white millet should lend to canary values showing some perk, but thus far this week things have not wavered much. Supply may be tighter down the road than suggested earlier by StatsCan as some uncertainty has risen around seeded acres. This uncertainty revolves around a substantial gap from insured acres from crop insurance reports, so we have some intrigue as to what is actually out there. Not that canaryseed is unfamiliar with major questions about supply, as canary seems to sit fine in a bin for 10 plus years, then magically show up in the market. Marketwise today, values are good enough to warrant sales, but show some promise of upside if the cards get dealt the right way.
Mustard markets are solid for another week as prices hold strong while the pipeline is slowly filled back up. Harvest, in most areas, is getting very close to completion now and we should soon have a good outlook on this year’s stocks. It is assumed based on increased acres and current demand trends that this year’s values wont quite reach last year’s highs, but only time will tell as we progress. When quoting prices this week, we want to stress that it’s important to talk to your merchant about an offer. This remains the most effective way to market your mustard these days, as quoted value vs what someone is willing to pay does fluctuate. Brown mustard sits at the $1.00/lb range for Oct/Nov movement, yellow continues to trend as high as 1.15/lb for January/February shipping, and oriental is still sought after being indicated at the $1.00/lb range as well for October/November movement; our guess being targets may trade higher. We have seed available again and it’s already selling at a brisk pace – please contact your merchant for details.
The canola market has seen quite a hike in price since last week. At the time of writing, we are seeing the board running at $872.40/MT equating to some pretty nice values that break $20/bu delivered in. The softness in the Canadian dollar is helping as is a projected softer tone to bushel reports from this year’s crop. Final numbers are not in and won’t be for some time yet, but speculation is that ending numbers falling just shy of 19MMT is a possibility. Market decreases in soybean and soyoil have helped keep canola at bay, but on a whole, the market remains volatile.
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