(Resource News International) –– Prairie mustard acres are unlikely to see much growth this year, despite expectations to the contrary from some industry analysts.
That’s according to a Saskatchewan-based mustard merchant who said plantings would be “flat at best” in 2010.
While mustard prices are down on the year, the crop still pencils out favourably compared to other options, which has led to some projections that acres will be higher on the year.
In a recent presentation at the Canadian Wheat Board’s GrainWorld conference in Winnipeg, Informa Economics came out with a mustard area forecast of 600,000 acres, which would be up from 525,000 acres the previous year.
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“There’s lots of talk, but we’re not seeing it in seed sales,” said Gordon Crone, manager of procurement and logistics with Mustard Capital Inc. at Gravelbourg, Sask. on the potential for an acreage increase.
Growers, he said, were waiting to see how bids for other crops sorted themselves out before making any commitments.
As a result, Crone said, the regular mustard growers would continue to plant the crop, but the “fly-by-night” producers who jumped on the crop in recent years when prices were higher may not be so prevalent.
Growers were generally looking to contract yellow mustard at 30 cents per pound, “but I think they’ll stick at 28.”
Current prices from Prairie Ag Hotwire show new-crop yellow mustard bids topping out at 27 cents per pound.
Many farmers are also still holding onto mustard from the past year that they haven’t been able to sell, which will make them reluctant to plant the crop without a contract in the upcoming growing season, said Crone.
Large on-farm supplies are also discouraging end-users from doing much forward pricing.
