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Mustards Faces Over Supply Problem
VANCOUVER - Feb 17/06 - SNS -- North American mustard remain in a state of over supply and acreage reductions forecast for the coming season do not appear to be enough to change the outlook.
Such attitudes are reflected in the latest price outlooks from Agriculture Canada, which again reduced its forecast grower price range for the 2005-06 season, though it more optimistic about 2006-07 values.
In its latest monthly review of Canadian mustard seed Agriculture Canada's market analysis branch in Winnipeg predicted production in Canada in 2006 will fall from 201,000 metric tons (MT) to 145,000. Seeded area is forecast to decline 21.7% to 410,000 acres.
Agriculture Canada expects this season's exports to finish around 130,000 MT, down 5,000 Mt from last month's forecast. It is forecasting exports in 2006-07 at 140,000 MT, down 5,000 from last month.
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