Winnipeg, Sept. 20 – Mustard spot prices are trending lower with limited demand for the commodity as harvest progresses.
Weather conditions may have curbed yield potential, to an extent, though production is still expected to be large, one market participant says.
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Bids for mustard have dropped from the levels seen in July and August into September, said Walter Dyck of Olds Products.
“Prices for all three types of mustard have really come off, and I think demand for the most part, has also come down,” Dyck said.
Delivered elevator mustard is between 29 and 31 Canadian cents per pound for yellow, 28 to 35 for brown, and 27 to 29 for oriental, according to data from Prairie Ag Hotwire.
Dyck said contract mustard is likely being delivered right now, which limits room to bring in spot mustard.
Harvest progress is also a feature, as states in the U.S., like North Dakota and Montana, are mostly wrapped up, and progress continues in Canada.
Saskatchewan’s harvest progress is close to 75 percent completed, Dyck said, but Alberta is lagging at 25 percent.
“There’s a lot going on as we speak, but I know there’s some rain in the forecast for this week, so that might delay it again,” he said.
Adverse weather may have trimmed yields, Dyck added, but production is still expected to be mostly in-line with Statistics Canada estimates.
“There’s been some good yields, but you know, hail and wind has also taken a toll on what could have been,” Dyck said.
He added that on-average yields should be close to 1,000 pounds per acre for yellow mustard, and 1,200 pounds per tonne for brown and oriental.
Statistics Canada expects yield to reach 1,078 pounds per acre for all types of mustard, according to production estimates released in August.
A model-based production forecast released this week by Statistics Canada estimated the mustard crop at 166,300 tonnes, which was down from the August survey-based estimate of 250,500, but still up from the 123,400 tonnes of mustard grown last year.
