News

Oilseed area in Canada will be at its lowest in 75 years

Flax Seed
Oil & Fats
Canada
Market & Price Trends
Published Apr 11, 2024

Tridge summary

Canada is facing a significant decrease in oilseed crop cultivation, with projections indicating a drop to a record low since 1949, covering only 510 thousand acres. This 16 percent reduction from the previous year is primarily due to a substantial decrease in flax cultivation, expected to fall below half a million acres despite a rise in purchase prices to 16 dollars per bushel. The decline in flax production is influenced by a global shortage, driven by reduced stocks in China, a poor harvest in Kazakhstan, and low carry-over balances in producing countries. Additionally, the competitive pricing with canola makes flax less appealing to farmers, contributing to the reduced acreage despite its higher price per bushel.
Disclaimer: The above summary was generated by a state-of-the-art LLM model and is intended for informational purposes only. It is recommended that readers refer to the original article for more context.

Original content

Oilseed crops in Canada this year could be reduced to 510 thousand acres or 206,400 hectares, which would be a record low since 1949. According to the online publication The Western Producer, the farmers themselves presented such data to the country's Statistical Department. This is also 16 percent less than last year. The expected reduction in flax area may play a major role in this. The manager of the Canadian brokerage company Rayglen Commodities Inc, Kent Anholt, who is also quoted by the publication, expects that they will amount to less than half a million acres or 202.4 thousand hectares. At the same time, the expert noted that this will happen despite the increase in purchase prices for the crop to 16 dollars per bushel (for flax - 58.5 thousand rubles per ton). Anholt recalled that this crop should, for example, be noticeably more expensive than rapeseed. “When canola is approaching $15, flax ...
Source: Rosng
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