(Resource News International) — Mustard bids in Western Canada should hold steady through the winter, as large old-crop supplies will more than make up for this year’s smaller crop.
Statistics Canada recently estimated 2010-11 mustard production at 171,900 tonnes, which compares with 208,300 the previous year. However, total available supplies are expected to be up on the year given the large carryover from 2009-10.
The mustard harvest is just getting started in southwestern Saskatchewan, with average to above-average yields and good quality reported, according to Tom Halpenny, CEO of Mustard Capital Inc. at Gravelbourg, Sask.
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“Most of the crop south of the Trans-Canada is in good shape,” said Halpenny, though he added that conditions were not as favourable moving north.
At least half to two thirds of the total mustard crop was in good shape, he estimated, with the remainder still showing potential, but at risk of an early frost.
Some quality issues could arise if there is a frost, “but we can’t predict which day the frost comes,” said Halpenny.
From a pricing standpoint, he said he didn’t anticipate any heavy buying this fall, as “everyone was pretty well covered coming out of the last crop year.” He said there was a “substantial carryover” from 2009-10, which will leave supplies more than sufficient to meet the demand.
As a result, he said, prices will hold steady overall through the next three to six months, although there may be some localized fluctuations depending on business that needs to be covered.
Yellow mustard bids as high as 23.5 cents per pound can currently be found in Western Canada, according to Prairie Ag Hotwire data. Brown mustard prices currently top out at 19 cents, while oriental bids can be found as high as 20.5 cents.
