Barley markets remain much the same this week. Growers are still able to capture bids in the $7.50 – $8.00/bu FOB farm range depending on location and delivery time frame. Recent reports suggest the new supply of corn will hit Canada mid-month, and it is still expected these shipments will affect feed barley pricing negatively. The price of feed barley is more than likely to drop and at this point we just wonder when and by how much. Now is the time to highly consider making some sales as we don’t want you missing out on these great feed values. Malt barley bids remain scarce without much interest to date, but we suggest growers use the firm offer system to show the market what you have and want. Reduced yields, high pricing, and an expected acreage bump due to reduced input costs make a perfect storm for limited seed barley availability this coming season. Producers interested in planting barley in 2022 may want to consider sourcing their seed supply early as to not miss the boat. Contact your merchant and they will be happy to help you find what you’re looking for.
Historically, prices are still sitting quite high for the pea market. We haven’t had many changes over the past week, as bids seem to have stabilized. Yellow peas continue to trade at $16/bu picked up, with the opportunity to attain $17.00 – $17.50/bu delivered if your peas are glyphosate free. Green peas remain at $16.00-$16.50/bu FOB, while maples continue to be bid in the $18.00– 19.00/bu range. Reports state that this market will be looking towards the US and China to see how far their processing coverage goes out. It is expected that coverage only extends a couple months with these lower yields and reluctant farmer selling. Therefore, pricing should continue to be supported.
Flax prices remain firm and up slightly from last week. Recent bids are indicated at $40.00/bu picked up in many locations with most delivery windows quoted into Jan. 2022. There remains potential for slightly higher values on a firm target when movement is pushed out to March 2022. Tight supplies and little substitution for linseed oil could help these values remain firm into the new year. The Black Sea region flax crop is the biggest unknown right now and only time will tell when those supplies begin to move into the market. Yellow flax prices are also in the $40-$42.00/bu range picked up. It’s not too early to start thinking about new crop as buyers start to chew on the idea of purchasing. Although firm values haven’t been quoted, contracts will include an act of God and FOB farm. This offers the opportunity to use a firm target to show buyers what value you’re expecting for new crop. Talk to your Rayglen merchant about an offer along with any seed you may be needing as we suspect it will be in short supply.
Chickpea bulls are slowing down as India continues to hold off on purchasing and harvest in Australia is reported as average. Overseas buyers have not shown interest in importing product at current local levels, but rather values that equate to $0.10/lb less. It is speculated that the values today are where they are simply because growers are unwilling to sell. Many sellers are holding out for historical bids, but keep in mind, today’s bids are still historically large in comparison to average years. The phrase “selling on the curve” comes to mind for chickpeas as we may not see those huge gains all were expecting. Current crop bids for #2 Kabuli chickpeas @ $0.58/lb-$0.60/lb FOB farm location dependant with no chatter on new crop values yet. If you’re wanting to add chickpeas to the rotation, feel free to call us for your seed needs.
The oats market has been showing some unbelievable bids over the past few weeks, with some buyers willing to push to $7/bu picked up on farm for heavy #2 quality oats. Supply is tight and prices will ebb and flow as sales are made and buyers get covered, but it is likely we will not see much change until the end of the year when StatsCan’s December report tells us if there is any change in ending stocks. We have also had great opportunities on selling light oats into the milling market as well as uncompromising feed oats bids. Regardless of the quality of oats you have in the bin we have a home for them. On an aggressive market like this, firm targets are one of the most effective ways to get your preferred movement window for a top price.
It has been another strong week for canola as futures markets have seen significant increases for the second week in a row. Vegetable oil markets across the globe are the biggest reason for the strength we are seeing, but there is also support from an increase in energy markets around the world. At time of writing the November futures sit at $925/MT, up from $895/MT last week. Some buyers are now trading off the January futures which are at $912/MT, up from $885/MT last week. Local basis levels continue to be positive in the coming months, resulting in some strong bids, hovering around $21/bu delivered plant, for producers to take advantage of.
Soybean values are being driven by the perpetual balancing of current market vectors. The positive winds of edible oil values and export optimism are measured against the downdraft in the Chinese economy and persistent Gulf shipping issues. Local bids have been as high as $14.00/bu FOB farm with posted bids being thin. Canadian faba yields are underwhelming this year. Quality variance is typical and insect damage appears prevalent this year. Feed quality bids are near $13/bu FOB farm and #2 export quality hover near $15/bu FOB. Dry bean prices continue to see strength with harvest volumes coming in at 80% of long-term average in some growing zones. Prices are anticipated to soften post-harvest largely in an effort to slow delivery pace and cadence to receiving and processing capacity.
The Canary seed market is adjusting to lower available supply and market price elasticity. The early fall “to infinity and beyond” trajectory has moderated to a degree. Market gossip would indicate that end use is trying to reduce their reliance on Canary due to the perceived high acquisition costs. That said, new players enter the market with buying positions to fill and buoy the market. Nearby shipping opportunities appear to be filling and more buyers are moving to Dec.-Jan. bids at 54¢ delivered.
Durum pricing is garnering some strength again this week as the overseas market is on the hunt for some product. They will look to fill their troughs a little closer to home instead of pulling from Canada. Right now, Canadian pricing and freight are a bit rich for the liking but eventually it will come into play as buyers can only hold out for so long. Top bids in Southeast Saskatchewan sit around $21/bu for a #1CWAD while Southwest Saskatchewan may see a slight dip. There is also a strong showing for lower grades as well so grab your grading papers and let your merchant know what you’re working with. Flipping over to wheat, a #1 13.5 protein HRSW looks to be hovering in around that $11.40/bu delivered in Nov./Dec. with some really strong interest on soft white for 2022 movement at $11.80/bu delivered in Central Sask. Feed continues to trade sideways as pricing remains firm at $9.50-$10/bu FOB farm.
Lentils are having another quiet week with not many trades taking place and pricing remains flat. Reds seem to be topping out at 49 cents delivered for the most part. If you have lower quality lentils 42 cents trades for prompt movement. Large greens are at stalemate with sellers holding tight and buyers not showing a ton of interest. This market is very quiet at the moment even with prices at 62-63 cents for a number #2 or better lentil. It will be interesting to see who blinks first in this market. Buyers are still looking for offers on specialty lentils such as French greens and Belugas.
Mustard has to be one of the most fought over commodities this year as every buyer in the market is looking for product. The question at this point of time is how high it can go before the markets just pull away and wait for things to settle down and/or encourage an overall slowdown. The old adage of high prices cure high prices will likely come into play at some point. The mustard market has been tough to keep pricing straight between actual prices, offers and the rumor mill of what mustard has traded for this Fall. The posted price sheets that we have received shows yellow priced 75-80 cents/lb for Jan. movement, oriental 40-47 cents/lb depending on when you would like it to move, and brown 70-75 cents/lb. Keep in mind firm targets have triggered significantly higher, so it is best to chat with your merchant before taking the first bid you get. As these prices continue to climb it may be time to think about booking your seed as the price could increase in relation to commercial prices.
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.