Canada can strengthen its position on the EU linseed market

Canadian exporters of oilseed linseed can increase their market share in the European Union if the latter impose duties on imports of agricultural products from Russia and Belarus. This opinion was voiced by Kent Anholt, manager of Rayglen Commodities Inc.

However, an obstacle to this may be the reduction of areas under the crop: according to estimates of the national statistical office, in this year, the crops in Canada will decrease by 16% to the level of 2023 – up to 206.4 thousand hectares. This is the lowest value since 1949.

Anholt expects an even bigger decline(to 202,400 hectares) despite flax purchase prices rising to $16 per bushel (or $58,500 per ton).

“With rapeseed approaching $15, flax at $16 is not so good. Flax must be much more expensive than rapeseed, otherwise they will not bother with it,” explained the expert.

However, the market may still find support, as the global oilseed market is expected to be in deficit due to lower linen stocks in China, a weak harvest in Kazakhstan in 2023 and low carryover balances.

Tags: Russia, EU, Canada, Belarus, linseed