(Resource News International) –– Flaxseed bids in Western Canada continue to rise due to ongoing weather concerns and expectations for a smaller crop. However, with no movement on obtaining wider acceptance for Canadian flaxseed in Europe, the upside in prices may be limited.
“Prices have jumped dramatically over the past several weeks,” said Barry Hall, president of the Flax Council of Canada in Winnipeg.
But the strength in prices, he noted, was primarily due to the weather concerns that left many fields unseeded and that continue to cause problems for the developing crops.
Read Also
Field-by-field mapping could improve yield, productivity predictions
University of Saskatchewan researchers are using field border mapping to collect data on field variability, including problematic weeds, and to predict things like yields.
Flaxseed spot bids as high as $13 per bushel delivered to the elevator can currently be found in Saskatchewan, according to Prairie Ag Hotwire data, with prices in Manitoba and Alberta also topping $12 per bushel in some cases. New-crop bids in the $13 per bushel area were also seen across Western Canada.
However, “high prices are only good if you have something to sell,” said Hall. And price increases will lead to rationing from some customers, he noted, which could reduce demand.
Factoring in unseeded acres and drowned-out spots, Hall estimated there were about one million acres of flaxseed in Western Canada. That would compare with 1.71 million the previous year.
Production was still very uncertain, but could end up in the 500,000- to 550,000-tonne area, he said. Canada grew 930,000 tonnes of flaxseed in 2009-10.
There have been no movements with regards to expanding market access to Europe, Hall said. The region used to be the primary destination for Canadian flaxseed, but sales have been hampered over the past year following the discovery of genetically modified flaxseed in Canada’s crop.
Some exports were still taking place to Europe under the stringent protocols currently in place he said. While efforts are underway to allow for an acceptance of a low level of genetically modified seed in shipments to Europe, Hall said progress was slow.
In the meantime, total Canadian flaxseed exports are actually up on the year, with China and the U.S. both importing more seed then they have in the past, said Hall. However, he noted, China is one of those price-sensitive markets where demand may back away if prices move too high.
