Winnipeg, April 21 (CNS Canada) – Canada’s flax acres are expected to fall about a third from last year’s levels, according to Statistics Canada’s seeding intentions survey.
One market participant says weaker prices have influenced farmers, while another says smaller crops are often overlooked during surveys.
StatsCan estimates flax’s seeded area at about 1.1 million acres, compared with 1.6 million acres in 2015, which was the largest planting since 2009.
“Prices held fairly low, compared to what farmers expected,” said Michael Popowich, co-owner of Yorkton-based TA Foods Ltd.
Since flax was harvested last September, price increases have been minimal, Popowich said.
Prices are about $2 to $3 per bushel weaker than they normally are in the spring, he said.
Delivered elevator flax is about $10.65 per bu. in Saskatchewan, according to Prairie Ag Hotwire.
“I think that probably has influenced a lot of farmers to look another direction, for at least one year.”
Poor export movement to China and larger than normal seeded area in 2015 kept pressure on prices.
“That just kind of led to a little bit of over-supply,” Popowich said.
Sometimes farmers don’t keep small-acreage crops in mind during surveys, said Neil Townsend, director of market research at G3 Canada Ltd. in Winnipeg.
He added that in future StatsCan reports, there could be a “reversion to mean” in final results.
“You never know with those smaller ones. We’ll see how it all unfolds out here.”
