The big news items on the mustard front have been the weather and the Stats Can report that came out late last week.
Here are the numbers from Stats Can:
area yield 2010 2009
|SASKATCHEWAN||Harvest||Production area||yield 2010||2009|
|ALBERTA||Harvest||Production area||yield 2010||2009|
The reduction in mustard acres are obviously worth noting. Firstly, these numbers are reduced from the last report. Secondly, these numbers are reduced from last year. 171,000 mt this year, down from 207,000mt last year. Lastly, I find the yield estimates of 1000 and 1200 pounds per acre to be a bit generous. On the flip side, there appears to be more carryover than previously anticipated.
The canola and wheat numbers are also way down. In addition, Russia put a ban on exporting wheat. These two key factors have driven up the value of wheat. This means that growers will be more likely to sell their wheat and hold onto their specialty crops like mustard.
The weather has still been uncooperative and sun and heat are badly needed. One night last week, the low was 3 degrees celcius, which is concerning. We keep hoping for heat and sun and hope the rains take a break and we do not encounter frost.
The market response to these issues has been lukewarm. Prices to the grower have raised slightly but growers want quick movement. Europe has bought some yellow and brown and North America has also bought some yellow and oriental.
Please let us know if you require anything.
Kevin Dick, AC Trading Ltd