(Resource News International) — Flaxseed bids in Western Canada have shown some improvement in recent weeks, with harvest delays providing some support. However, the lack of business to Europe could continue to limit the upside, according to market participants.
Roughly 50 per cent of the flax is still in the fields in Manitoba and eastern Saskatchewan, said Richard Zacharias, general manager of Prairie Flax Products at Portage la Prairie, Man.
While the harvest has been delayed, he thought forecasts calling for dry, sunny weather across Western Canada for the next week will allow those crops to finally come in.
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Zacharias said the late harvest shouldn’t cause too many quality issues for flax, as the crop usually holds up reasonably well under adverse conditions.
From a pricing standpoint, Zacharias said, values were showing some improvement over the past few weeks.
Top-end flax cash bids of $8 per bushel or more can now be found across Western Canada for flax delivered to the elevator, with the best prices offered in Manitoba, according to the latest Prairie Ag Hotwire data.
Zacharias thought some of the recent strength was likely tied to elevator companies looking to cover some business.
While GM concerns are still keeping Canadian flaxseed out of Europe, the Flax Council of Canada recently reported that a protocol was now in place for testing flaxseed shipments for GM contamination.
Analysts expect prices in Western Canada to jump higher should exports actually resume to Europe, as the region is usually the major customer for Canadian flaxseed, taking about 70 per cent of Canada’s total exports on average.
