Flaxseed: “Risk of a potential crash”
December 31, 2025 at 11:00 AM ,
Der AUDITOR
Which were the main difficulties faced by the flaxseed market in 2025? What has changed compared to the last two years?
The flaxseed market this year, as any other year, has had its fair share of difficulties. This season, as of right now, the main difficulty faced was in fact the logistics. The delay in the harvest was an issue, but it is highly likely attributed to the overcompensation in comparison to last season's harvest which was delayed and partially ruined by the rains. The logistics this season has been an unanticipated curveball that created the most difficulties for us.
Geopolitical tensions are an ongoing issue.
How did the import tariffs on shipments to the USA impact the flaxseed trade?
In the case of the US import tariffs, there were surprisingly no long-term effects from companies existing in a "European bubble", there was a slight initial spike in prices, but it evened out pretty quickly.
Were there any noticeable drawbacks on the trade with Russia when it comes to flaxseed? Or did Kazakh traders actually benefit from the trade restrictions imposed by Western countries?
There were drawbacks from the restrictions on the trade with Russia, however those were mostly suffered by the buyers. Kazakh traders mostly benefited although it did create a trading bottleneck in the first year or two.
Once again commodity prices have risen significantly in many markets, some being at all-time highs or close to. Inflation and higher production costs are leaving their mark; meanwhile, with a few exceptions, flaxseed prices are largely at the same level as last year. Do you think market players will profit from these developments?
We believe the flaxseed market staying stable is the biproduct of the topic of the question above, the sanctions, tariffs and restrictions created an unfavourable environment that boosted the production and that helped keep the scale of supply and demand balanced. As of right now market players are profiting from these developments, yes, however, this is not without risk of a potential crash.
Looking at the current market situation, what challenges might the flaxseed market face in the upcoming year 2026?
It is near impossible to predict, given the last two years' challenges were not predicted by anyone. The weather conditions always prove to be a difficulty, especially since the farmers tend to put an overly positive spin on predictions that sets unreasonable expectations. There is also the possibility of a potential crash as mentioned previously, and the logistics difficulties don't seem to be evening out, so that may also play a role in next year's harvest.
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