(Resource News International) — Flaxseed bids in Western Canada continue to hold within a tight range, showing little sign of either improving or dropping lower. While acres are expected to be down on the year, supplies are still more than sufficient and the ongoing uncertainty over shipping to Europe should limit any upside.
Flaxseed is currently trading at just over $8 per bushel to the producer, according to one Manitoba-based flaxseed merchant. Prices have been trading at that relatively steady level for months, showing little sign of breaking one way or the other, he said.
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With no aggressive movement on either side of the market, producers are taking a wait-and-see approach with pricing the 2010-11 crop, with little to no forward pricing taking place.
Looking ahead, on the supportive side, “they seem to have worked out a tentative testing procedure, that will be accurate enough to hopefully ship flax to Europe,” said the flaxseed merchant.
However, there is still enough uncertainty regarding shipments to Europe to keep a cautious tone in the market.
That uncertainty is likely behind the projected 15 per cent reduction in Canadian seeded area in 2010. While the area may be down, supplies are still expected to be more than sufficient to meet the demand, according to the merchant.
Crop conditions in the flax-growing regions of Western Canada are also nearly ideal, according to the merchant who noted that “there should be a good crop out there.”
