(Resource News International) — The flaxseed cash market in Western Canada remains under pressure by absence of European demand, and will likely stay that way until the situation in Europe is resolved, or new markets are found.
Canada has been unable to sell flaxseed to its biggest customers in Europe since European buyers reported discovering genetically modified CDC Triffid flaxseed in a shipment earlier this year.
If a producer shops around, they can pick up prices close to $8 per bushel for flaxseed, said Paul Martens, co-ordinator of operations with Prairie Flax Products at Portage la Prairie, Man.
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However, he said, many of the elevators don’t want to see a lot of flax, due to the lack of movement to Europe, and are only offering low prices to keep the commodity from coming in.
“For the most part, I wouldn’t think that too many of the bigger companies want to see much flax come in right now,” said Martens.
“We have too much product and not enough places to put it,” added Mike Jubinville of ProFarmer Canada.
“If the Europeans come back in, we’ll immediately be above $9,” said Jubinville, although he thought a quick resolution was unlikely.
In the meantime, there will still be some flax moving to the U.S. and China, and Jubinville recommended that producers take advantage of pricing opportunities in the $8 per bushel range if they can get them. He didn’t see much room higher currently without the European demand.
