Flaxseed: pandemic leaves its mark
July 22, 2020 at 11:22 AM ,
Der AUDITOR
Rise in crop is still possible
Experts still reckon that a larger area can be harvested than in 2019 and that there will be less shrinkage, so that flaxseed production could increase to 512,000 metric tonnes, up 5% on last year. In contrast, the export forecasts for the 2020/2021 season seem rather optimistic, because Canadian exporters will have to struggle even harder with Kazakhstan as China's new trading partner. Market prices are expected to vary between CAD 490-530 per metric tonne EXW.
|
Flaxseed, Canada |
2018/19 vs. 2019/20 |
2019/20 vs. 2020/21 |
||||
|
Tilled |
347,000 |
379,000 |
9.2% |
379,000 |
369,000 |
-2.6% |
|
Harvested |
342,000 |
339,000 |
-0.9% |
339,000 |
344,000 |
1.5% |
|
Yield (mt/ha) |
1.44 |
1.43 |
-0.7% |
1.43 |
1.49 |
4.2% |
|
Production |
492,000 |
486,000 |
-1.2% |
486,000 |
512,000 |
5.3% |
|
Imports |
9,000 |
15,000 |
66.7% |
15,000 |
10,000 |
-33.3% |
|
Total stocks |
628,000 |
561,000 |
-10.7% |
561,000 |
592,000 |
5.5% |
|
Exports |
468,000 |
350,000 |
-25.2% |
350,000 |
450,000 |
28.6% |
|
Domestic consumption |
100,000 |
141,000 |
41.0% |
141,000 |
42,000 |
-70.2% |
|
Overhang stocks |
60,000 |
70,000 |
16.7% |
70,000 |
100,000 |
42.9% |
|
avg price in CAD/mt |
496 |
520 |
4.8% |
520 |
510 |
-1.9% |
|
Agriculture and Agri-Food Canada |
||||||
Weak export performance
According to the Kazakh statistical service, flaxseed exports in May fell to 30,000 metric tonnes, the lowest level since the beginning of the year and the second lowest in the 2019/2020 season, and a total of around 462,000 metric tonnes of flaxseed was exported from Kazakhstan between September 2019 and May 2020. Experts explain the decline with the drop in demand caused by the pandemic. On the European spot market, prices for brown flaxseed with a 99.9% purity currently range at EUR 0.58 per kg DDP Germany, the new crop is offered from EUR 0.56 per kg DDP.
|
Flaxseed, Eastern Europe |
|
|
Quality |
EUR/kg |
|
Brown, 99.9%, 2019 crop |
0.580 |
|
Yellow, 99.9%, 2019 crop |
0.770 |
|
Brown, 99.9%, 2020 crop |
0.560 |
|
DDP Germany |
|
Haloxyfop limits should be adapted
Meanwhile, the Association of the Oilseed Processing Industry in Germany (OVID) is campaigning for the reassessment of the haloxyfop limit for linseed. Currently, this corresponds to the analytical detection limit (0.01 mg/kg). "We observe that political decisions are moving away from proper risk assessments. This disrupts the basic principle of risk-based food safety, puts a strain on the investment climate and endangers jobs. In order to maintain the supply of flaxseed in food and feed and its use as a renewable commodity, we call on the European Parliament to approve the EFSA proposal, supported by the EU Commission and member states, to establish an import tolerance for haloxyfop in linseed," said OVID Managing Director Dr. Gerhard Brankatschk.
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