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Flaxseed: higher production estimates in Canada

July 15, 2020 3:19 PM, Der AUDITOR
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OTTAWA/NUR-SULTAN. StatsCan has again reduced its estimates for the 2020 Canadian flaxseed acreage. The company expects a decrease...

... of 3% as a smaller acreage was sown, which will result in decrease from 379,000 ha to 369,000 ha. If one reckons a correspondingly smaller area of 345,000-350,000 ha that can be harvested, the yield of 1.45-1.50 mt/ha should nevertheless be sufficient to achieve an increase in production from 486,000 metric tonnes (2019) to 500,000-525,000 metric tonnes (2020).

SaskFlax writes in the July report that since the start of the season a total of 258,186 metric tonnes of flaxseed has been exported from Canada, about 110,000 metric tonnes or 30% less than in the same period last year. The main customer was China with 107,141 metric tonnes (-45%), followed by the USA with 81,824 metric tonnes (-28%) and Europe with 43,093 metric tonnes (+23%). In comparison, the export average for the past five years is 478,287 metric tonnes for this period and 270,000 metric tonnes for shipments to China. This development clearly shows the influence of Russian and Kazakh flaxseed cultivation on Canada's export trade.

Prompt shipments relatively expensive

Large quantities of flaxseed are again expected to be grown in Russia and Kazakhstan this year, although market players fear that the drought in parts of the growing regions could have a negative impact on yield and quality. Spot offers for brown flaxseed with a 99.9% purity tend to be at a level of EUR 0.58-0.60 per kg DDP Germany and are thus considerably more expensive than in recent years at this time. Price indications from the new crop are around EUR 0.30 per kg cheaper. Meanwhile yellow flaxseed from the 2019 crop is available for EUR 0.79 per kg DDP Germany. Farmgate prices in Canada are stable, but foreign buyers can benefit from the currently stronger euro.

Flaxseed, 2019 crop

Quality

EUR/kg

Brown, 99.9%, Eastern Europe, DDP DE

0.580-0.600

Yellow, 99.9%, Eastern Europe, DDP DE

0.790

Brown, 97% purity, Canada, EXW Manitoba

0.344

Trade sources

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