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Spot mustard prices hit fresh highs on reduced acreage

Posted by Flaman Agriculture Sep 30, 2015

CNS Canada — Producers who opted against selling mustard earlier in the season are now relishing the spot market, which is reaching fresh highs not seen since 2008 against contract prices.

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.

Those 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.”

This year’s production is estimated at 109,400 tonnes, compared with 198,000 in 2014, according to Statistics Canada.

Farmers only have limited amount of land they can put into oilseeds, so this may have just been one of those years 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.

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