Tough Situation in Flaxseed Market
The global flaxseed market is facing a unique situation: the demand for raw materials for processing this season is much higher than the supply, Apkinform reports.
"While in previous years we saw a significant surplus of supply over-processing, today the figures are not just equalized, but the supply is about 100 thousand tons lower than the level of demand for processing. Only the residues will help us out, which, by the way, are very small," said Evgeny Karabanov, founder of Severnoe Zerno LLC, at the Asia Grains & Oil Conference: Results of 2023 in Almaty.
According to his estimates, oilseed flax residues in Kazakhstan are only about 30 thsd tonnes, in Russia - about 50 thsd tonnes, and in Canada - up to 180 thsd tonnes.
"The market situation is quite tough. It is still unclear why everyone is so calm and relaxed - in May, we will see everyone runs in when there is no more flax," the expert emphasized.
At the same time, the expert noted that the market has been restructured and partially replaced flaxseed oil in the industrial sector (primarily in the production of drying oil) with other types of oils - rapeseed and soybean, adding additives.
"While in previous years we saw a significant surplus of supply over-processing, today the figures are not just equalized, but the supply is about 100 thousand tons lower than the level of demand for processing. Only the residues will help us out, which, by the way, are very small," said Evgeny Karabanov, founder of Severnoe Zerno LLC, at the Asia Grains & Oil Conference: Results of 2023 in Almaty.
According to his estimates, oilseed flax residues in Kazakhstan are only about 30 thsd tonnes, in Russia - about 50 thsd tonnes, and in Canada - up to 180 thsd tonnes.
"The market situation is quite tough. It is still unclear why everyone is so calm and relaxed - in May, we will see everyone runs in when there is no more flax," the expert emphasized.
At the moment, this is already affecting the market - prices are rising on all bases.
The main consumer of oilseed flax is China. Last season, it imported 1.023 mln tonnes of the crop, while in 4 months of the current season (July-September), it has already imported about 320 thsd tonnes, E.Karabanov said, referring to the ITC data. China purchased the major part of flax from Russia - 201 thsd tonnes, from Kazakhstan - 94.5 thsd tonnes, and 25 thsd tonnes - from Canada.At the same time, the expert noted that the market has been restructured and partially replaced flaxseed oil in the industrial sector (primarily in the production of drying oil) with other types of oils - rapeseed and soybean, adding additives.
