Variable yields supportive for mustard prices

(JohnnyMad/Getty Images)

MarketsFarm — Statistics Canada’s principal field crop production report last week estimated a significant drop in Canada’s 2019 mustard production.

In September, the agency estimated Canadian mustard would total about 141,000 tonnes. However, due to challenging growing conditions and a slight reduction in acreage, the StatsCan estimates released Friday were revised downward to 134,600 tonnes. In 2018, Canadian farmers produced 173,600 tonnes of mustard.

Walter Dyck of Olds Products said there was “wild variation in yield” across Canada due to a dry growing season across most of the Canadian Prairies, which brought down average yields significantly.

In turn, spot prices for yellow and brown mustard have increased. Yellow mustard, which was around 35 to 37 cents/lb. a few months ago, is now around 40 cents per pound.

“That’s quite significant for the market to turn that corner, from the 30s into the 40s,” Dyck said.

Brown mustard spot bids have increased only slightly to 31 cents/lb., after being around 30 cents/lb. for most of the summer.

Dyck expected prices to remain steady due to the significantly reduced production. However, 2020 new-crop prices will depend on “where the market feels prices will have to be.

“If those prices are seen as fairly soft, we’ll probably see an uptick in that spot price.”

— Marlo Glass reports for MarketsFarm, a Glacier FarmMedia division specializing in grain and commodity market analysis and reporting.

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