Canadian Mustard Yields Hurt?

WINNIPEG - Jul 28/06 - SNS -- Canadian mustard seed yield prospects may have been hurt by the recent hot and dry weather which has scorched much of western Canada, warns Louis Dreyfus Canada Ltd. in a recent review of the commodity.

The main production zones for mustard are the brown and dark brown soil zones in southern and west-central Saskatchewan. "The degree of dryness and crop conditions is variable across the region, and some rains have arrived in the past week, with oilseed crops well-past flowering it could be too late to stop some degree of loss from earlier expectations," the company said.

Unfortunately, the 2006-07 season will start with a substantial carry in, which will limit the upside potential for the commodity, "especially in the face of normal yield prospects in the current year. But within those supplies the breakdown by type and quality of mustard will be more important to price direction in the future, and on this question there remains some uncertainty.

"Oriental mustard can be crushed for oil in low-priced export markets like Bangladesh, where it competes with canola and other vegetable oils," Louis Dreyfus said in its analysis.

Subscribers can read the full text of the article by Clicking here