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Flaxseed: China steps up shipments from Kazakhstan

June 29, 2020 at 3:13 PM, Der AUDITOR
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NUR-SULTAN/OTTAWA. China is increasingly turning to Kazakhstan for flaxseed. More than 50 companies have been approved to ship flaxseed to China.

China offers better conditions

Suppliers in Kazakhstan that shipments to China are highly attractive. Not only are Chinese buyers willing to pay 50-70% in advance, they also pay higher prices than most European buyers. Customs authorities in China have, in addition, now approved more than 50 suppliers in Kazakhstan to ship flaxseed. Previously only 25 companies were accredited.

Canada loses out

In switching to Kazakhstan China is, however, cutting back in shipments from Canada. In the first eight months of the season exports from Canada to China only ranged at 68,000 metric tonnes as maket analysts state. In 2018/2019, however, nearly 270,000 metric tonnes were shipped to China, and in the years before shipments regularly exceeded 300,000 metric tonnes. Canada has shipped a total volume of 100,000 metric tonnes this season so far, which falls well short of the 350,000 metric tonnes projected by StatsCan for the entire season. Large carry-over stocks will, therefore, remain at the end of the season. Prices, however, remain stable prompted by reports of inferior quality of the flaxseed harvested in spring. Supplies in export quality are very much limited.

Wide price gap in Europe

Traders in Europe are paying more attention to Canada in relation to the new season with the hope of finding comparable or more competitive prices than in Eastern Europe. Cleaned flaxseed from Eastern Europe is trading in a range of EUR 0.58-0.63 per kg DDP Germany, depending on supplier. Although it will take some time until contracts for the new crop will be available, the prices for small volumes will be issued soon.

Flaxseed, brown

Quality

EUR/kg

99.9%, Eastern Europe, DDP DE, 2019 crop

0.580-0.630

97%, Kazakhstan, FCA KAZ, 2019 crop

0.410-0.420

97%, Kazakhstan, CFR EMP, 2020 crop

0.432-0.437

97% Purity, Canada, EXW Manitoba

0.350

*Reference prices

Germany steps up buying in Russia

Germany has imported a total of 111,189 metric tonnes of flaxseed in the first eight months of the season, a decline of 14.3% on the same period last year. While shipments from Russia, Poland and the Netherlands have risen considerably, shipments from Kazakhstan and France have, by contrast, declined.

Flaxseed shipments to Germany in mt

Country

2018/19

2019/20

Diff.

Russia

33,698

38,876

15.4%

Kazakhstan

43,940

30,018

-31.7%

France

19,601

9,538

-51.3%

Poland

8,511

9,270

8.9%

Belgium

8,183

7,987

-2.4%

Netherlands

3,159

4,126

30.6%

Canada

3,132

3,004

-4.1%

Austria

1,503

1,801

19.8%

India

2,146

1,765

-17.8%

Ukraine

464

868

87.1%

Others

5,354

3,936

-26.5%

Total

129,691

111,189

-14.3%

Federal Statistical Office of Germany / Sep-Apr

Attached Files

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price chart flaxseed brown Eastern Europe

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