Over the past week or two we have seen feed grains under pressure with producers raising indications and feeders backing off their bids. March 15th we traded Barley FOB Eckville AB with May/June delivery for $6.55/bus FOB. Yesterday we were getting bids at Aldersyde AB for the same time frame at $6.37/bus FOB. With record feed prices this year and road restrictions hitting early this year feeders are taking the opportunity to, take a step back, have a breather and check inventory required between now and new crop. It appears the export market for feed grains is cooling off slightly easing the upward pressure on prices.
-Many feeders have indicated at current feed prices they do not plan to replace the mouths to feed at the same ratio that they are slaughtered. Its sounding like the processors still have large backlogs to work through.
-Yellow Peas had an excellent year reaching over $11 FOB this winter and now cooling back to $9.50-$10.00 FOB. New crop in Saskatchewan is right around $9.25 delivered for Sept/Oct movement. In Alberta we have been seeing $9.60 delivered for Sept/Oct and $10.00 delivered for Jan/Feb/Mar.
-The Green Pea market has been cold since the new year. Currently we are seeing April/May bids at $9.00 FOB. Many producers are saying they won’t sell their Green Peas for a discount to Yellow Peas to which processors are responding “Green Peas aren’t under priced it is Yellow Peas that are over priced.”
-The Canola market has remained volatile hitting a ceiling at $800 backing off to $750 and returning back to test the $800 highs. As a result, it has been a fantastic year to sell any off condition Canola (heated, green, spring thrashed). If you have any I would suggest giving any of us a call to figure out pricing and movement timeframe.
-We have seen some strength in Lentils with Reds coming up from 0.28 FOB to 0.30 FOB over the past couple months. Producers remain bullish on possible exports to India but that window is slowly closing.
-Flax processors are saying they should be well covered between now and new crop with the odd hole to fill but that has brought bids back from $24 to $23 FOB.
-The Milling Oat market has been as high as $4.50 delivered and cooling off as buyers/processors have bought coverage into new crop. Current bids range from $3.75 FOB in Saskatchewan to $4.15 FOB in Manitoba.
Give us a call if you have any questions or would like to price out current crop or new crop
Until next time,
John Falk Richie Yaremko
Marketer – Altona MB Marketer – Yorkton SK
Victor Dorma Reed McDonald
Marketer - Airdrie AB Owner/Marketer – Calgary AB.
Wes Schneider Howard Warren
Marketer - Vulcan AB Marketer – Champion AB
Robert Rusu Andrew Hall
Marketer - Moose Jaw SK Marketer – Lethbridge AB
204-729-1354 – office
204-761-8320 - cell