Winnipeg, September – Producers who opted against selling mustard earlier in the season are now relishing the spot market, which relative to contract prices is reaching fresh highs not seen since 2008.
Delivered elevator prices are between 45 to 46 cents per pound for yellow mustard, 31 to 33 for brown, and 34 to 36 for oriental, according to Prairie Ag Hotwire.
The prices are the highest they’ve been against contract prices in seven years, said Walter Dyck of Olds Foods Products.
“I think the market is moving now because it anticipates a small crop,” he said. “I think that caught a lot of people by surprise.”
Statistics Canada estimates production at 109,400 tonnes, compared with 198,000 in 2014.
Seeded area this year was about 324,000 acres, down from about 500,000 acres in 2014
Farmers have a limited amount of land they can put into oilseeds, so this may have been a year where it was tricky for producers to work mustard into their rotation, Dyck said.
There was also a shortage of certified planting seed in Canada this year.
Despite minor complications, the mustard harvest has been progressing well in Saskatchewan and Alberta.
“My perception is that the mustard harvest is well-advanced. There are some regrowth issues, but I don’t think it’s that serious,” said Kevin Hursh, executive director for the Saskatchewan Mustard Development Commission.
“I think growers have been able to manage that more one way or another.”
In Saskatchewan, where most of the crop is grown, mustard harvest is 72 percent finished, compared with 78 percent last year.
“Alberta has been lagging behind Saskatchewan, but I think this week will be fairly significant,” Dyck said.
He estimates after this week Alberta harvest will be about 80 percent finished.
