Yellow Mustard Prices

[melvill]

Just talked to CEO/grainbuyer/grand pooh-bah of a new mustard milling company that just opened at Gravelbourg, SK., called Mustard Capital Inc. The company had its official opening on Monday.

They have some innovative pricing alternatives for yellow or oriental mustard:
1) Spot for immediate delivery
2) Spot for forward delivery - basically a DDC
3) guaranteed delivery unpriced, at company delivery call, for a specific 60-day window. Price is average of STAT Publishing reported price over the 60-day period.
4) delivered unpriced with price average of STAT Publishing price from date of delivery to end of the crop year.

Prices are all FOB the farm. Current DDC price for Dec or later delivery is 38 c/lb. The company pays on-farm storage equal to the CWB malt barley storage program.

I checked with the CGC regarding licensing and bonding. The company has applied for licensing and bonding and that is expecting to happen within the next 10 to 14 days.

Phone number 306-648-2799

[traderj]

We just purchase 1.4 million lbs @ .55/lb f.o.b. Eastern AB for Oct - Feb. Delivery.

[melvill]

traderj, did you mistype "million"? That's roughly 15 super-B loads!

[grainboy]

a couple things, traderj what company do you work for? and that gravelbourg plant any ideas what type of volumes they are using?

[melvill]

grainboy, I don't remember exactly what tonnages the Gravelbourg plant will use annually but the number 5,000 tonnes bounces around in my head. The day I talked to the plant, they weren't buying any on the spot market. They were full up. However, it seems to me they were looking for some for late Nov and Dec delivery. Better check that though. My brain's too full of important things like coaching indoor soccer and hunting for a 66 Meteor. Grin!!

[traderj]

Yes it was 1.4 million. I work for Sunrise Foods in Saskatoon. www.sunrisefoods.ca

Not sure on the Gravelbourg plant's volume.