This week we’ve seen a nice uptick in flax prices that we’re going to take advantage of!
2017/18 (old crop flax)
Moving from 50% to 70% sold, for anything in for May/June/July/August movement. Depending on region and the grain marketing channel, old crop delivered flax prices that we’re seeing are ranging from $12.50 to $13.00 CAD / bushel in Western Canada and in the US Northern Plains, $10.40 to $11.30 USD / bushel.
There are buyers who are looking for product in between these two boundaries so get your offer posted on FarmLead at $12.75 CAD / bushel and say you’re willing to deliver. If you’re not willing to deliver, we would suggest a lower price accordingly.
2018/19 (new crop flax)
Moving from 0% sold to 20% sold, looking for movement in September/October 2018 (off the combine). You should be trying to get an AOG (Act of God) clause on this. Price points we see are ranging from $12 to $12.50 CAD / bushel, dependent on the region and the grain marketing mechanism (i.e. FarmLead Marketplace). In the US, the price point to be looking for is $10.50 to $11.25 USD / bushel.
Click here to post your old or new crop flax on the FarmLead Marketplace. Please note that for new crop flax posts, make sure the crop year shows 2018.
We last made a flax sale on January 16, in the week when the announcement of the TPP free trade agreement gathered some headlines. Before that, we made a flax sale in mid-November 2017.
Today, we’re recommending moving another 20% of old crop flax to get to 70% sold.
There are some strong flax premiums, relative to where prices have been in the past couple of months. Fresh flax bids on the FarmLead Marketplace have been impressive whereas bids at the elevators have wallowed a bit.
At some elevator locations, especially in Alberta, we noted that the market is inverted, that is a rough indication that commercials need flax now for spot.
Also, the large US crush plant at Fargo in North Dakota is posting a bid of $11.30 USD per bushel (or $14.50 CAD per bushel) for April movement and for September delivery. Both US bids are up 30¢ USD / bushel on the week, indicating some strong demand.
While flax prices at some Canadian elevator locations are steady, we could see them tick higher in the next week so you could easily set a target.
We’re very aware of some seasonal demand in the market and these opportunities might be short-lived. With this in mind, we’re not going to 100% sold on old crop flax because of some of the dryness concerns in Western Canada. Also, we have to consider the smaller flax acres this year in both the US and Canada. Put another way, there still are some bullish indicators and we’re cognizant that some upside potential / strength remains.
President / CEO
FarmLead – North America’s Grain Marketplace
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