Winnipeg – Mustard crops in Western Canada are waiting on rain, just like most everything else, but spot prices have not yet reacted to the weather concerns as end users are well covered with contracted supplies and are waiting to see how conditions develop over the growing season.
“At this time of the year, every day is a new day… there’s hope that we will get some rain,” said Walter Dyck of Olds Products in Alberta.
He said seeding went relatively well for mustard, but dryness was already a concern as subsoil moisture was already lacking and timely rains will be needed going forward.
Canada is the world’s largest exporter of mustard seed, and any production issues have the potential to boost prices.
However, contracted prices were well above the spot market. End users are covered for the time being with the uncertainty over new crop production limiting additional buying interest, according to Dyck.
Yellow mustard is currently priced in the 33 to 35 cents per pound area, while brown mustard bids top out at 31 cents, and oriental at 25, according to Prairie Ag Hotwire data.
Contracted prices “had a ‘four’ in front of them,” said Dyck.
Canadian farmers intended to plant 416,300 acres of mustard in 2019, according to Statistics Canada data. That compares with 503,800 acres the previous year.
After seeing an increase in brown mustard acres in 2018, Dyck expected some of those acres shifted back into yellow mustard this year.