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Flaxseed: Russia has doubled exports to China

May 20, 2020 12:13 PM, Der AUDITOR
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MOSCOW/OTTAWA. The expert estimates for the Russian sowing in 2020 do not correspond with previous expectations. Meanwhile, a rising price trend can be seen in the international flaxseed market.

Crop forecasts are in line with last year

Until recently, experts had reckoned that flaxseed production in Russia could rise to 730,000 metric tonnes in 2020, which would be an increase of 80,000 metric tonnes or 12% over last year. In their latest report, however, the analysts at APK-Inform speak of a roughly 3% larger acreage of just under 840,000 ha and a corresponding production volume of 660,000-670,000 metric tonnes.

Goods in Eastern Europe more expensive

Currently, farmgate prices in Russia are at a level of EUR 0.46-0.47 per kg FCA, thus continuing their upward trend. High export demand has led to rising prices this season, and with shrinking stocks at the end of the season, this is likely to continue for the time being. According to reports, 78% of the flaxseed exported in the first six months of this season was shipped to China and Belgium, with exports to China more than doubling compared with the same period last year. Due to rising commodity prices, traders have also increased their offers for cleaned flaxseed. Flaxseed, brown, with a 99.9% purity is currently trading at EUR 0.56 per kg EXW Poland and EUR 0.60-0.62 per kg DDP Germany.

Flaxseed

Quality

EUR/kg

Brown, 99.9%, Eastern Europe, DDP DE

0.600-0.620

Brown, 97%, Eastern Europe, DDP DE

0.550

Brown, 97%, Kazakhstan, FCA KAZ

0.440-0.450

Brown, 97%, Russia, FCA RU

0.460-0.470

Brown, 99.9%, Canada, CIF EMP

0.820-0.830

Reference prices

Delayed start of sowing in Canada

In the Canadian flaxseed market, prices from Manitoba have also risen significantly in the last two weeks and are currently at a level of EUR 0.39 per kg EXW Manitoba. The reason is said to be increased demand from Western European countries, after the price expectations of buyers could not be matched by traders from Eastern Europe.

In addition, Canadian agricultural media are reporting that the sowing for the 2020 crop was very slow, and at the beginning of May it was estimated that only 1% of the land had been sown, compared to 5% last year. Although it was rather dry in large parts of the province during the winter months, the high soil moisture considerably delayed the start of sowing. In addition, some farmers still had to clear several acres of land that could not be harvested last fall. In some cases, farmers simply burned the area after quality analyses showed that harvesting was not profitable.

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