CNSC / High yields and good prices are making for a good season for Prairie mustard growers.
“Prices in the spot market have stayed in the 38- (Canadian) cent area for yellow and brown mustard, so I think that indicates that by no means have we got a lot of extra mustard out there,” said Walter Dyck, mustard buyer with Wisconsin-based Olds Products. “Considering their yields, and the fact that a lot of them did contract a portion of their production at higher prices than 38 cents, I think it was an excellent year for growers.”
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According to Saskatchewan Agriculture’s final crop progress report for 2013, yields average 1,300 pounds per acre, which is substantially higher than the 10-year provincial average of 777 pounds per acre.
Dyck added that there are some crops in southeastern Saskatchewan that still need to be harvested, but for the most part, the majority is combined and good in quality.
“The little bit of harvesting that still needed to take place was happening out here the last few weeks,” he said. “Some of it is being taken off a little bit on the wet side, but it’s that time of the year to just bring in the last little bit.”
Dyck said Canadian exports should remain fairly steady, which should in turn keep spot prices steady for the near term.
“Canada’s export market is very stable, so around 120,000 to 125,000 tonnes of mustard exports are expected,” he said. “I think for the near term, it seems like 38 cents will buy the mustard that’s needed for the short term.
“For the long term, we’ll have to wait and see what happens with other commodities as we get into 2014. I don’t see too much happening with prices unless we have some significant moves in other commodities.”
Looking ahead to the 2014-15 crop, Dyck said competitive prices will be needed for growers if they want to increase acreage. FarmLink Marketing Solutions released its 2014-15 acreage estimates last week and next season’s crop is pegged at 330,000 acres, down from 340,000 acres in 2013-14, and far below the five-year average of 426,000 acres.
“Regardless of the high yields this year, acres weren’t that high,” Dyck said. “In fact, they were just slightly up from the previous year, so we have to have a very serious contract price out there (for 2014-15).
As of Oct. 25, Prairie Ag Hotwire had f.o.b. yellow mustard valued at 38 and 39 cents per pound, brown at 36 to 37 cents per pound, and the oriental variety at 27 to 29 cents per pound, with all prices being steady for the past month.
