Since my last report on 1-Nov bids for all spot mustard types (yellow, brown and oriental) have shot through former historic highs to set new records. It should be obvious why after Statistics Canada 2021 average yield report in December chopped their total mustard yield estimate down to 370 lb/acre from 510 lb/acre in September! 2022 grower contract prices will have to respond with a level not imagined before!
I believe the remaining mustard on farms is now all virtually sold and awaiting pick up/delivery with the exception of few parcels of oriental and yellow mustard. Even though brown mustard acres increased significantly in 2021 most of brown acres were contracted and therefore not available in the spot market.
Olds Products plans to start their non-organic grower contracting program on 6-Dec and the organic program will start just a bit later. Since 2009 we have started our contracting program after the annual crop production show in Saskatoon in early January. This year we decided to start approx.. 5 weeks earlier due to our increased demand and strong market new crop pricing from all commodities. We want to get the price right! After a price is set it is the same price for all Olds Products growers depending if in Canada or Montana/North Dakota. Since 2009 we have only increased our contract price once after our start but every year we include a clause in the grower contracts that states if before 15-Mar we increase our price all contracts written before will be lifted to the new price. We will continue with the clause again this year.
Olds Products will also continue with the same act of god clause we have used in the past and our contract yield index will not change. We have recently secured planting seed in the open market for certified brown and oriental as well as an incremental amount for our certified yellow requirements. Olds Products also has both of the latest AAC yellow 80 and AAC brown 18 varieties available in increased quantities for 2022 with no price increase.
The Olds Products Team in Pleasant Prairie, Wi plus Bart, Peter and I, look forward to working with you as you plan and make decisions for 2022.