The market for mustard continues to improve, especially on yellow. Yellow mustard is now trading in record type territory at the 75-cent/lb range. Brown is sitting at 65 cents and oriental is indicated up to 50 cents, all based on #1 quality and picked up on farm. It is important to talk to your merchant as higher offers will likely be looked at. In this environment, most offers are being considered if the time frame is reasonable. New crop contracts have started to appear. Please feel free to talk to a merchant about opportunities at very high values already with an act of God. We have competitively priced certified seed available as well, which includes delivery to your farm. It is certainly best to start with certified seed to avoid any unnecessary grade or quality issues.
The barley market remains rather strong this week, with bids sitting anywhere from $7.25 – $8.00/bu FOB farm for feed. As always, these values are area dependant with freight playing the biggest role in determining where the firm bid shakes out. Every week this report is released, we edge closer to corn being brought up from the US at cheaper values, which will inevitably affect the high feed barley price. The window to lock in these historical bids is still there but closing fast, so growers may want to consider makings sales short term. We suspect that given the growing conditions through-out the Prairies this year, many uncontacted malt varieties are struggling to make grade, ultimately adding more tonnes to the feed market. Recent rumblings suggest that growers with malt quality can catch somewhere in the range of $9.00/bu, but actual trading remains quiet to this date. Feed barley tends to carry a shorter delivery window than malt as buyers attempt to just hold themselves over until corn arrives in Canada.
As expected, StatsCan decreased its pea yield estimate, now reporting a 39% decline from last year. The USDA also decreased their estimate, down 44% from last year, which is why we were seeing such strong US values. Canadian peas were also being moved south, but it is looking like that immediate demand has been met as US yellow pea bids pulled off their highs. Current local yellow pea bids are indicated at $16.00/bu picked up, with potential protein premiums if you are in Southeast Sask. Green peas are priced at 16.00/bu picked up as well, while maple peas are down a touch to $19.00/bu. Finding seed might be the next struggle experienced this year, but we will have a supply of certified seed if you are in need.
While canola trade remained sideways for another week the November futures are slightly up at time of writing to $866.80/MT. Local values seem to find the most strength in the Dec./Jan. shipping window with bids hovering around $19.66/bu today. Weather has been cooperative for a late harvest but a need for rain is apparent. Subsoil moisture is severely lacking and concern for Spring is already growing. Early statistics out of the US and Canada both indicate canola production down 40% from last year despite an increase in seeded acres. This is based on StatsCan number release last week and the USDA will be releasing their crop production number on Oct. 12th.
The oat market continues a strong and steady path with bids consistently on the rise since the start of harvest. Recent pricing has been quoted over $5.50/bu picked up in many cases with delivered to plant bids hovering around $6.50-$7.00/bu in Manitoba. Recently, deferred shipment has been capturing the highest values with buyers looking to secure product into the new year. The feed oat market remains strong as well, trading around the $5.00/bu range for good quality feed. Discounts will likely apply for lighter and higher moisture oats, so make sure to have your specs on hand so we can market your grain effectively. Strong values like this are tough to ignore and it might not be a bad idea to take some risk off the table and make some incremental sales. Call your merchant for a bid catered to your farm.
The Canary seed market has backed off from the highs of 58 cents per pound picked up on farm for movement out into the early part of 2022. Current price indications show bids slumped a little to the 55-56 cent range FOB farm with some buyers pushing all movement into 2022. With Canary yields coming in around half of what they did last year, the market is tight. Based on very high prices and lack of supply Canary does sit on a precarious spot as the birdseed market will likely be forced to rework their mix and use replacement commodities in their product. That said, for those with Canary that haven’t made a move yet, it may be a good plan to take some risk off your plate at current levels. Can you really go wrong saying you sold Canary at 55 cents/lb? These are the kinds of values the old timers talk about from way back!
Flax prices remain strong again this week with product trading at $37.00-$38.00/bu picked up on farm. Opportunities exist for slightly higher pricing when delivery windows are pushed out to March 2022, so feel free to discuss this option with your merchant. Will these prices hold? That is the main question among the masses. We have seen push back in other commodities and flax too will have its highs, but right now flax prices are in the acceleration phase. Supply issues globally weigh on everyone’s mind, as Kazakhstan has concerns about their flax yields. As flax harvest picks up pace and more farmer selling takes place, the market will eventually sort out where the price rally runs into resistance. End users of flax will have to sort out which demand will get rationed as there is no real substitution for linseed oil. If you need flax seed for next year, it’s time to start thinking about making purchases as supply will be tight. Contact Rayglen for seed options!
The chickpea market has maintained a similar trading range over the past few weeks with no major changes showing up. Bids have reached as high as $0.61/lb FOB farm for large sized kabuli chickpeas with the bottom end sitting right around $0.58/lb FOB, mostly location dependent. Contracts typically require maximum 10% 7mm sizing, with discounts to apply on product over 10% 7mm. We strongly recommend knowing the sizing of your chickpeas before marketing as to avoid any surprises and because many chickpeas have been coming off small compared to past years. We do have options to market all sizes and grades of chickpeas so be sure to get us your specs and/or samples so we can get to work on finding homes for your product.
Chicago soybean futures are up on rumors of China booking another large sale. Confirmation is expected to occur later this morning. A stronger US dollar, South American production prospects, and uncertainty about loading paces at the U.S. Gulf continue to limit gains in the soy complex. Local bids have been as high as $17.50 FOB farm, but active bids remain sparse. Canadian faba bean production is forecast to be down sharply and at one of the lowest produced volumes in recent years. Anecdotal reports have indicated varying quality in the Canadian crop, which is actually fairly standard. Feed quality bids are near $11/bu FOB farm, while #2 export quality typically brings a $2/bu plus premium. Export values seem to be getting established. Dry bean prices continue to see strength as final harvest numbers remain speculative. Water cooler talk is expecting a year over year production decline in the US and Canada. Globally that may be muted by the positive prospects of the Mexican and Argentinian crops.
There was not much change in the wheat market since this time last week. Feed values continue to range between $9.50 – $10.00/bu picked up on the farm. Looking at the milling sector, there is buyer interest on some higher protein (14%+) #2 CWRS with bids at $11.20/bu delivered in Central Sask. for end of the year movement. If you have some higher or lower protein product let us know as offers are a great way to show buyers what you’re working with. Cash prices continue to be supported due to tighter stock margins, but we’ll have to keep watch on Australia’s and Argentina’s crops, although they are some distance from harvest yet, the outlook is positive. Moving on to durum, the market pricing remains steady at $18/bu delivered in for a #2ob CWAD with movement this year both in SW and SE Sask. As well, there is buyer interest in lower grade product so if you have grading specs let your merchant know as they might be able to work on some blending packages.
Most lentil markets remain quiet again this week with little selling taking place and most buyers content not changing markets. India came out early this week and imposed a 33% tariff on American red lentils, so far, the only country affected. With India adding this tariff it now throws some more uncertainty into the markets. Red lentils continue to slip in price this week with 49cents/lb delivered plant seeming to be the high. Keep in mind some buyers are posting bids as low at 46 cents FOB farm. Large greens are still trading at the 62-63 cents/lb FOB far though, with small greens bid at 59-60 cents/lb FOB farm. Buyers are also still looking for offers on Belugas and French Greens and some record pricing. Call to discuss these niche crops!
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.