Canada: Supply-demand hits mustard

The Canadian mustard market is facing challenges due to an increase in supply and a decrease in demand. Production of brown and Oriental mustard has fallen, while yellow mustard production has risen by 70%. Despite reduced production in the United States, it is expected to still require imports. Factors such as potential tariffs and reduced production in Russia, along with increased exports from Ukraine, may impact the market. Despite these challenges, market analyst Chuck Penner predicts that Canada may export around 105,000 tonnes of mustard this year, a slight increase from the previous year. However, he also notes that low periods in the mustard market tend to be long-lasting, indicating a potentially challenging future for the industry.

The two biggest headwinds facing the Canadian mustard market right now are bigger supplies and weaker demand, market analyst Chuck Penner said at last week’s Sask Mustard annual general meeting in Saskatoon. “It is really disappointing.” Production of brown and Oriental mustard was down, Penner said, while that of yellow mustard was up about 70 per cent, according to Statistics Canada numbers at the end of the year. These numbers worked together to balance out carryover supplies from last year, says Penner of LeftField Commodity Research. “We have some adequate, comfortable supplies of all three classes this year,” he said, estimating total production from last year of around 200,000 tonnes and current supplies of around 265,000 tonnes. In terms of demand, he said production in the United States was down about one-quarter from the previous year, at 47,000 tonnes, but with a decent sized carryover, he isn’t sure how this will affect global trade. “Our guesstimate at that ...