Flax prices remained quiet in the month of April and was a common theme discussed in the GrainCents Weekly Flax Digest as we looked for something to move the needle.
As we moved into April, flax prices were largely ignoring the USDA’s Prospective Plantings report showed that 225,000 acres of flax will get planted this spring in the US. That’s down 26% year-over-year and could intuitively be interpreted as bullish but flax prices didn’t really move.
For the remainder of the month, the flax market lacked fresh news to push flax prices anywhere. One bearish indicator is the slow pace of the Canadian flax exports. Traditional buyers of Canadian flax such the US and China have been the sidelines or at least buying at a slower pace.
The end of the month culminated with StatsCan saying Canadian farmers will plant 982,200 acres of flax in 2018/19. This is down 5% year over year.
Moving forward, weather, Canadian export activity into the US, and the Canadian Dollar will likely have the greatest influence on flax prices.
Not to be forgotten, flax export competitors like Kazakhstan and Russia will continue to be a factor in Canadian flax prices. Specifically, we continue to see Canada’s flax exports underperform in comparison to Kazakhstan.
Be sure to sign up for your free 3-week trial at GrainCents as this month could be the most impactful for how and when you price your flax for the rest of 2017/18 old crop, as well as a significant portion of your 2018/19 new crop production.