Flaxseed bids hold steady

(Resource News International) — Bids for flaxseed in the cash pipeline in Western Canada have been generally holding steady levels, although the trend has been more to the upside rather than down.

“There has been some minor worry about the late development of the various crops, and flaxseed has been included to some degree in those concerns, but few are anticipating any shortages of the crop,” said Ben Friesen of Keystone Grain at Winkler, Man.

Friesen felt that a lot of acres may have gone to flaxseed at the last minute.

“Flax may not have been a producer’s first choice, and those who plant it probably would prefer to have the crop seeded earlier rather than later as the yields improve under those circumstances,” he said.

“However, the crop also has a hardiness to it, which makes it able to withstand the cold conditions in the fall better than a number of other alternatives.”

As a result, Friesen felt the area seeded to flaxseed in Saskatchewan may have been a lot higher than anticipated, with Manitoba area also likely to have come in a bit better than anticipated.

“The lack of panic among end-users has translated into some steady prices in the cash market from both an old-crop and new-crop perspective,” he said.

Friesen said some locations in Manitoba have seen new-crop bids for flaxseed hit the $12 per bushel level, but that has only been a recent development.

Statistics Canada on April 24 estimated that producers in Canada would seed an estimated 1.725 million acres to flaxseed in the spring of 2009. In 2008, 1.56 million acres were seeded to flaxseed. Statistics Canada is scheduled to update those seeded area estimates on June 23.

Cash bids for old crop flaxseed delivered to the elevator in Saskatchewan, as reported by Prairie Ag Hotwire, currently range from $10.87 to $12 a bushel, in Manitoba from $11.05 to $12.03 and in Alberta from $10.57 to $11.33. New-crop bids for flaxseed in Saskatchewan presently range from $9.78 to $11.50 a bushel.

Cash bids for old-crop flaxseed delivered to the elevator in Saskatchewan on May 15, as reported by Prairie Ag Hotwire, ranged from $8.89 to $11 a bushel, in Manitoba from $10.50 to $11.75 and in Alberta from $10.31 to $10.57. New-crop bids for flaxseed in Saskatchewan in the middle of May were $8.80 to $10.74 a
bushel.

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