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Mustard seeds: production estimates fall short of expectations

June 9, 2020 at 4:09 PM , Der AUDITOR

OTTAWA/NUR-SULTAN. Agriculture and Agri-Food Canada has recently revised the production estimates for mustard seeds downwards. Instead of the initially expected...

... 145,000 metric tonnes, production is now estimated at 140,000 metric tonnes. Although the area sown is similar in size to last year, nominally higher yields should drive up production by 3.7%. Prices are expected to range lower in the new season.

Mustard seeds, Canada	2018/19 vs. 2019/20			2019/20 vs. 2020/21
Area sown (ha)	204,000	161,000	-21.1%	161,000	160,000	-0.6%
Harvested (mt)	197,000	155,000	-21.3%	155,000	155,000	0.0%
Yield (mt/ha)	0.88	0.87	-1.1%	0.87	0.90	3.4%
Production (mt)	174,000	135,000	-22.4%	135,000	140,000	3.7%
Imports (mt)	8,000	7,000	-12.5%	7,000	8,000	14.3%
Total supply (mt)	235,000	214,000	-8.9%	214,000	203,000	-5.1%
Exports (mt)	121,000	115,000	-5.0%	115,000	115,000	0.0%
Domestic consumption (mt)	42,000	44,000	4.8%	44,000	43,000	-2.3%
Carry-over stocks (mt)	73,000	55,000	-24.7%	55,000	45,000	-18.2%
Avg. price (CAD/mt)	690	715	3.6%	715	695	-2.8%
Agriculture and Agri-Food Canada

Germany cuts imports

Shipments to Germany ranged below 30,000 metric tonnes in August 2019 till March 2020, which is a 14.5% decline on last year. Shipments from Russia were thereby cut by 27% to 12,261 metric tonnes and from Kazakhstan by 37% to 2,099 metric tonnes. By contrast, the shipments from Ukraine have risen by 15% to 10,169 metric tonnes.

Mustard seed imports, Germany (mt)
Country	2018/19	2019/20	Diff.
Russia	16,886	12,261	-27.4%
Ukraine	8,860	10,169	14.8%
Canada	4,475	4,256	-4.9%
Kazakhstan	3,344	2,099	-37.2%
Czech Republic	436	228	-47.7%
Others	1,023	931	-9.0%
Total	35,024	29,944	-14.5%
Federal Statistical Office of Germany / Aug-Mar

Prices on the rise in Kazakhstan

Although prices in Kazakhstan range much lower than in the first few months of the year, a noted upward trend has been observed in recent weeks. Sinapis Alba mustard seeds with a 97% purity are currently trading at EUR 0.31 per kg EXW Kazakhstan. Brassica Nigra mustard seeds with a 98% purity are trading at EUR 0.335 per kg EXW Kazakhstan.

Mustard seeds, Kazakhstan
Type	EUR/kg
Sinapis Alba, 97% purity	0.310
Brassica Nigra, 98% purity	0.335
EXW North Kazakhstan

View more information
- mustard seeds, Brassica Nigra, 98% purity
- mustard seeds, Sinapis Alba, 97% purity, FCA Kazakhstan
- price charts

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What are incoterms?

Incoterms are internationally recognized trade clauses that facilitate the trade in goods with the help of standardized contract formulas. They regulate the distribution of costs and obligations and thus prevent misunderstandings and disputes. They must always be agreed by both contracting parties and confirmed by signing the contract.

Overview of the incoterms

Please note that this is only a rough overview of the Incoterms. For a comprehensive description of the Incoterms, please visit the website of the International Chamber of Commerce.

EXW - Ex-Works (ex works)
The seller must ensure access to the goods at another named location (e.g. factory, factory, warehouse, etc.). The buyer organizes the loading and the transport and bears the costs and risks.

FCA – Free Carrier (free carrier)
The seller must deliver the goods to the buyer's carrier at a location specified by the buyer (for shipping or collection). The seller also undertakes the export customs declaration. The buyer assumes the risk from the moment the goods are handed over to the carrier.

FOB – Free on Board (free on board)
The seller assumes all costs and risks until the goods have been loaded onto the ship. The seller is also responsible for export clearance. The buyer takes responsibility as soon as the goods are on board.

CIF – Cost, Insurance And Freight (Costs, insurance and freight to the port of destination)
The seller assumes all costs and risks until the goods have been loaded onto the ship. The seller bears the costs for packaging and postage for export. The seller also takes out insurance against the buyer's risk of losing or damaging the goods during carriage.

DAP – Delivered At Place (delivered named place)
The seller assumes the costs and risks for the transport of goods to an agreed address.

DAT - Delivered at Terminal (delivered terminal)
The seller must make the goods cleared for import available to the buyer at the terminal of the named port of destination at the agreed time.

CPT – Carriage Paid To (freight paid by)
The seller must make the goods cleared for import available to the buyer at the terminal of the named port of destination at the agreed time.

DDP – Delivered Duty Paid (duty paid free)
The seller delivers the goods to a destination at his own risk and expense. He takes care of all the formalities and bears all costs and import duties.

CFR – Cost and Freight (cost and freight)
The seller assumes all costs and risks until the goods have been loaded onto the ship. The seller has to conclude the transport contract and bears the costs and freight for transporting the goods to the named port of destination or import terminal

CIP – Carriage And Insurance Paid To (freight and insurance paid by)
The seller delivers the goods to the carrier or another person named by the seller to an agreed location. The seller bears the costs and risks for the transport to the specified destination, as well as for the freight insurance. The buyer regulates the import handling and import taxation.

FAS – Free Alongside Ship (free alongside ship)
The seller delivers the goods to the carrier or another person named by the seller to an agreed location. The seller bears the costs and risks for the transport to the specified destination, as well as for the freight insurance. The buyer regulates the import handling and import taxation.

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Incoterms

What are incoterms?

Overview of the incoterms