Canada
December 19, 2013

Source: Syngenta Canada

Current good prices could put flax on the radar of more western Canadian producers in 2014.

Although the 2013 crop was bigger than expected, good demand has helped hold prices up relatively well, compared to other oilseeds. Prairie flax prices now range from about $13.25 to $13.50/bu – enough to likely interest more producers in planting the crop next spring, said Will Hill, president of the Flax Council of Canada.

“I think if this price scenario continues, we will see an increase in acreage (next year)," he said, adding he believes Canadian flax planted area could run as high as 2 million to 2.5 million acres without oversupplying the market.

Flax seeded area this year amounted to just over 1 million acres.

In particular, increased acreage could be seen in Alberta next year, Hill said, noting that province doesn’t have the luxury of planting soybeans as an alternative crop like Manitoba does.

FarmLink Marketing Solutions, a Winnipeg market advisory company, has estimated 2014 flax area at about 1.2 million acres.

Expectations of increased acreage are due to continued strong export sales for Canadian flax, Hill said, noting the EU, China and the U.S. are all major importers.

“The demand picture is pretty strong, and with the problems in Eastern Europe, I think we’re going to continue to see good demand for seed in Canada," he said. “We are shipping more to Europe, or as much as last year, so that’s positive."

“Well, I would say it ended up being a very viable crop again, and I think that the potential for it to grow (in acreage) is very good," added Richard Zacharias, general manager at Prairie Flax Products. “Some of the other commodity crops like wheat and canola are starting to drop pretty erratically in their pricing, so I think flax will be a very good replacement (next year)."

Zacharias said he’s hearing of new-crop flax pricing of around $12/bu.

Source : DePutter Publishing Ltd.
 

Website: http://www.syngenta.ca

Published: December 20, 2013