Since last month the Indian Flax seed price has been staying between stable and firm. The last price drop for the seed was experienced in September. In October, the trend went up for a day, after which it remained stable until the mid of November when the price went northbound for a day.
Market Sentiment
Based on the price, it can be assumed that the demand for Flax seed in Indian spot markets has been stable. However, the Chinese Flax seed market has been a bit volatile.
As of November 24, the China-origin Flax seed and the imported Flax seed in the country remained stable. However, the overall inventory of Flax seed in China is dwindling. In the Chinese ports, the Flax seed stock is less.
The only reason the prices of Flaxseed in the Chinese market are stable is because of a few steady demands in the market. Also, it needs to be noted there isn’t much pressure on the sellers from the suppliers. So, the traders can hold on to the stock for a while until the prices go a bit firm.
While in the Chinese mainland, the price is staying a bit stable, the prices at the port have reached an all-time historical high, supporting the improved price of the imported Flax-seed in the country. However, according to experts, this high price won’t be staying for the long run. Instead, with less demand, the price will go down.
Currently, the high purchase cost and extremely high risk due to several factors like container shortage and increased freight price, there is less arrival of Flax seeds at the Chinese port. As per the Chinese customs data for October 2021, China imported only 13072.62 MT of Flax seed. Compared to September’s import, the quantity was down by 18870.37 MT. As per the report, the import quantity for the seed decreased by 13138.89 MT when compared to October 2020.
The high price of the Flax seed at the Chinese port has resulted in domestic plants lowering their operation for the crop. As a result, the competitiveness in the market for Flax seed oil and Flax seed cake has taken a serious slump. Therefore, the bearish mode for the plants and the demand for the oil and cake might continue for a while in China.
Prices
Brown Flaxseed (Canada Origin Containers )—8500 RMB/MT—1330 USD/MT
Brown Flaxseed (Canada Origin Bulk)—8500 RMB/MT—1330 USD/MT
Flaxseed (Russia Origin, Cleaned)—8100 RMB/MT—1268 USD/MT
Flaxseed Price In India
| Date | Price |
| November 23-25 | $1,39 per kg FOB |
| November 2-22 | $1,38 per kg FOB |
| October 18- November 1 | $1,30 per kg FOB |
It now remains to be seen how the Indian market will be affected by China’s Flaxseed decrease in demand. China is the second-largest importer of Flaxseed in the world. Hence a reduction in their demand can affect the Flaxseed price globally.
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