The price for flaxseed has been steadily increasing across the Prairies, but one industry participant thinks the bullish days may be coming to an end in the near future.
Ben Friesen, commodity purchasing manager with Keystone Grains at Winkler, said although elevators aren’t saying it, the price flax has been at $15 per bushel for a little while.
“We’ve bought quite a bit at 15 and Viterra also bought a lot at 15. The purchasing has been at 15, and it’s just a matter of how long it’s going to stay there before it starts to drop,” Friesen said.
He said he expects the price to begin to decline from its current high levels within a couple of weeks.
While he said many contracts were being bought for $15, numbers from Prairie Ag Hotwire showed elevator deliveries in Manitoba were bringing as much as $14.31 per bushel, $14.75 per bushel in Saskatchewan and $14.50 per bushel in Alberta.
The prices have been sharply stronger over the past month, with increases anywhere from $1.07 to $1.75 per bushel higher than one month ago, according to Prairie Ag Hotwire.
“The main reason for the increase in price has been the big companies like Viterra have been wanting to load vessels before the freeze-up,” Friesen said.
Despite the high prices, Friesen said the strength in the market is not due to a lack of supply. “For the food grain side of it, I think there are a few quality issues, but that shouldn’t affect things too badly or any of the rest of the market at all.”
– Ben Friesen, Keystone Grains
“It’sjustamatterof howlongit’sgoing tostaytherebefore itstartstodrop.”