News

Canada could strengthen its position in the EU flax market

Oil & Fats
Canada
Regulation & Compliances
Market & Price Trends
Published Apr 11, 2024

Tridge summary

Canadian oilseed flax exporters are poised to potentially increase their market share in the European Union, contingent on the EU imposing duties on agricultural imports from Russia and Belarus, as highlighted by Kent Anholt of Rayglen Commodities Inc. This opportunity, however, is challenged by an expected 16% decrease in Canada's oilseed flax crop area in 2023, dropping to its lowest since 1949 at 206.4 thousand hectares. Despite a rise in flax purchase price to $16 per bushel, its competitiveness is at risk due to the close pricing of canola at about $15 a bushel. Nonetheless, a global shortage of oilseeds, driven by diminished flax stocks in China, a poor harvest in Kazakhstan in 2023, and low carry-over balances, may still offer market support.
Disclaimer: The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

Canadian oilseed flax exporters could increase their market share in the European Union if the latter introduce duties on imports of agricultural products from Russia and Belarus. This opinion was voiced by the manager of Rayglen Commodities Inc. Kent Anholt, reports OleoScope. At the same time, the expert clarified that an obstacle to this could be a reduction in the area under Canadian oilseeds - according to estimates from the National Statistical Office of Canada, in this year. oilseed flax crops in the country will decrease by 16% by 2023 – to 206.4 thousand hectares (the lowest value since 1949). At the same time, K. Anholt expects an even greater decline (to 202.4 thousand hectares), despite the increase in purchase prices for flax to $16 per bushel. “But when canola gets closer to $15 a bushel, flax at $16 isn’t that good. It must be noticeably more expensive than ...
Source: Zol
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