The pea market has seen little to no change from last week and although harvest is progressing slowly, most of the peas are already in the bin. Chinese pricing for Canadian peas isn’t showing any strength right now, according to recent reports, and this is a good indication that we likely won’t see a large uptick in bids for the short term. We are also still competing with the Black Sea region and their shipment of peas into the European market, which poses a significant freight advantage when compared to Canada. Current trades are being done at $5.75-6.00/bu FOB on yellows, $8.00-8.25/bu FOB on greens and $7.00/bu FOB on maple peas. If you have dun peas in the bin $7.00/bu FOB is an indication worth targeting.
The constant start, stop, start and stop due to the weather has prolonged harvest and the quality that was maybe once there, is no more by this point. As a result, feed buyers continue to see an onslaught of product being shown to them. Feed wheat/durum is fetching anywhere in that $4.00 – $4.40/bu range depending on location. Now, on the opposite side of the spectrum, is the good quality product. CWRS with a 13.5% protein is pulling in $6.40 – $6.90/bu with the later for pushed out movement, delivered to plant. The topic everyone is talking about… #1 CWAD. These past couple of days pricing has been on the rise, but where it lands is anyone’s guess. We haven’t seen a lot of commitment on either the buyer or the seller side for pricing and selling. We have seen some $9.00/bu FOB farm trade in select locations though the market is fluctuating in that $8.00-$8.50/bu FOB farm for the most part. A strong play for this market is to call your merchant and put out a target to try and jump start buyers with quantity, quality and a firm price in mind. One thing to be aware of when you are looking for prices is to make sure you have had testing done on your product. Buyers are looking to know what they’re bidding on and variables such as falling number and sprouting are going to be vital.
There is no big news out of the canaryseed market this past week. Bids are still flat in the 30c/lb range with some opportunity for prompt delivery available. Trading has slowed in the canary market and we suspect this can be attributed to harvest delays and continued producer bullishness. Buyers have pulled quite a bit out of the bins already at 30 cents, now we wait to see how the rest of the crop year shakes out and if this market has more legs. Producers have been waiting for a surge in price like this one and should hedge some product at current values. There is no saying this market pushes higher, especially when current levels are still being rewarded with sales. There is still lots of canaryseed in the field and producers are waiting patiently to take in this year’s crop. We hope mother nature will cooperate in the upcoming weeks.
Flax prices are holding sideways this week and 2019 harvested acreage has been minimal so far, with the focus being on more vulnerable crops. As another snow fall makes its way through the prairies, delayed harvest reflects on the near-term price, with values of $13.50/bu picked up in the yard being bid for product that is in the bin. Yellow flax prices are near $14.00/bu picked up. Flax harvest in the US has been reported favorable and prices have dropped off in recent weeks. Flax movement has been fairly quiet, but the supply squeeze and delayed harvest is enough to boost prices. The latest snowfall will create some more challenges, so it’s hard to say where these flax prices will go. However, the biggest factor still remains the Black Sea region. If the Black Sea region has modest inventories of flax, we could see export competition decline.
Unharvested chickpea quality is starting to crumble, and we may be seeing a slight bump in recent #2 bids because of it. For those who have product off, we have seen trades hitting the books at upwards of 26 cents/lb delivered for large kabuli varieties. Desi chickpeas are in the 20-cent range, with little grower interest. Yield estimates seem to vary due to some disease issues this year, but there is carry-over, which is what is keeping prices from rallying too strongly. The Indian market for kabuli and desi chickpeas is also showing very few signs of life. India has stockpiles of desi chickpeas so; those supplies will be moved first. The impact of the harvest delay will play a factor in pricing out any lower grade chickpeas and finding homes for lower grades could be a struggle. We do have some pricing opportunities now, but these values depend on specs, so please call your merchant or send in your samples.
Feed barley markets haven’t seen much change from last week. Continued poor harvest conditions are holding prices steady as we wait to see if the weather will cooperate. A lot of tough and sprouted grain has been seen in the Rayglen office, and we have buyers for both! Just make sure you know the percentages of each, so your merchant can find the best home for it. October movement is tough to find, but there is a slight chance if you lock something in near-term. For the most part bids are quoted as Nov-Dec now for $3.10-3.40/bu FOB farm. Holding until Jan-Mar 2020 captures $3.20-3.50/bu or April-June 2020 at $3.30-3.60/bu FOB farm depending on freight. If you have malt quality barley, make sure you are sending us samples, as we have malt buyers looking for product.
The canola futures are down a touch today, with November sitting at $465/MT. Rain/snow has once again delayed our canola harvest and the general comment we’ve been hearing is that very little has been harvested thus far. Some is swathed or standing (now lodged), which makes it a lot harder to get. Canola can take the weather better than a lot of other crops and we hope there aren’t too many quality issues but won’t know until the crop hits the bin. For the few that have been able to harvest, yield reports are good. On a pricing note if you are taking canola off and there is some green count in it, get a percentage and talk with your merchant as we have homes.
The mustard market as expected remains flat. As this harvest slowly continues along, it will be interesting to see what quality of mustard is pulled off and if some gets left behind. Will this start to impact prices? It will be interesting to see what happens. Yellow mustard is currently trading at 36c/lb FOB farm, brown at 30c/lb and oriental at 23.5c/lb on Cutlass variety. All pricing is based on #1 grades and subject to sample acceptance. It may be time to talk to us about new crop contracting. Let us know what you are thinking for prices with an Act of God. We have also begun sales on all types of certified mustard seed delivered to your yard, both treated an un-treated.
Little change has taken place in the oats market this week. There are expectations of significant amounts of snow falling in south central Manitoba, which will have an impact on the oats harvest moving forward. In Saskatchewan, we are roughly just over 50% done the oats harvest and the cold, wet weather will likely affect the quality of what’s left in the field. Milling quality oats are trading between $3.40-$3.75/bu delivered to plant depending on what area you’re in and what delivery timeframe you choose. Feed oats are trading between $2.50-$2.75/bu picked up in the yard.
As the US soybean crop rating continues to slide, the market is expecting the USDA to lower its production estimate on Thursday. Couple that with the lower stocks report from the beginning of the month and you have a slightly nervous market that continues to feed the bull. Planting pace in Brazil continues to lag which also adds optimism to the market. Local soybean bids are trading in the range of $10.25-$10.50/bu picked up on farm. We have had reports of new crop faba harvest in southern regions with very few of the northern acres in the bin. #2 faba bean bids continue to hover near $7.50/bu picked up. Dry bean bids have held reasonably firm with selling opportunities across a few local buyers.
Lentil markets are holding onto last week’s pricing for the most part. A few buyers have pulled back their small green bids, but 20 cent FOB farm is still available in certain locations. Large green lentils seem to be holding at 24 cents for #2 or better and reds remain quiet with no movement in value this week. Any lentils remaining in the field will most likely be feed quality and this is reflected in recent bids. Feed market values are all over the place depending on colour and location. Feed greens have seen bids as high as 11 cents on farm and reds as low as 8 cents with on farm pick-up. Low grade lentils will see the most downward pressure as the industry feels there will be ample supply to meet demand.
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.