MarketsFarm — As with other crops on the Canadian Prairies, flax has been struggling with the hot and dry conditions across the region.
That said, Scott Shiels of Grain Millers Canada at Yorkton, Sask. noted there’s very little doubt when it comes to flax prices increasing during the course of 2023.
Presently, old-crop flax was $12.50-$13.66 per bushel delivered, according to Prairie Ag Hotwire. Both old- and new-crop was $13-$14/bu. free on board.
“Prices are definitely going to be climbing,” Shiels said.
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However, at this stage it’s unclear as to how high flax could increase as it remained in not too bad of shape. Manitoba reported its flax was still in good condition, with most fields in the full to late flower stages. Saskatchewan said its flax rated 45 per cent good to excellent, while the crop in Alberta was at 35.6 per cent.
Nevertheless, Shiels stressed yields will be down this year as “the flax is not liking this hot, dry weather.”
On top of that, farmers planted less flax in 2023 than last year, according to Statistics Canada’s survey-based estimates. The agency pegged this year’s crop at only 609,200 acres, a drop of nearly 22 per cent from last year. In fact, this year’s flax crop is the smallest seeded area since 1950 when 584,000 acres were planted.
Agriculture and Agri-Food Canada forecast 2023 flax production at 375,000 tonnes, down almost 21 per cent from 2022. Ending stocks are to fall from 275,000 tonnes last year to 165,000, with now a strong likelihood of dropping further.
— Glen Hallick reports for MarketsFarm from Winnipeg.
