Western Canadian flaxseed spot bids continue their bullish trend, up from late-January lows. Firm export demand, along with tighter supplies have added towards the upward price action, a senior grain company merchant said April 17.
“Export demand for flaxseed has been good for April, May and June.”
Some of the underlying support seen in spot bids has been tied to firm demand coming from China, the trader said.
Concerns over tight near-term global supply, due to low-quality flaxseed coming from Kazakhstan, have helped amplify the upward price trend, the trader said. The lower quality coming from the Black Sea country, is making traders look at what Canada has, the source said.
As tight short-term supply has provided some underlying support in flaxseed old-crop bids, the upward trend in canola prices is also adding to the firmness in western Canadian flaxseed spot bids, the trader said.
Western Canadian flaxseed spot bids are going for as high as $14.50 in Saskatchewan, $13.98 in Manitoba, and $14.50 per bushel in Alberta, according to data from Prairie Ag Hotwire. That is up anywhere from $0.79 to $1.25 per bushel, compared to one month ago, and an increase of $1.30 to $2.06 from late January.
The trader said new-crop flaxseed bids will be strong this spring.
Western Canadian farmers are expected to seed one million acres of flaxseed, the trader said. However one million acres may still be fairly tight given the firm demand. In 2011, 695,000 flaxseed acres were planted across Western Canada.