📊 Flax Market Overview

Despite expectations of a price dip with new crop arrivals, flaxseed prices in key markets have surged due to lower production and sluggish market arrivals. This unexpected trend is highlighted by a significant drop in productivity despite increased sowing areas, particularly in India where production forecasts have been halved from initial estimates. This report delves into the current dynamics of the flax market, examining price movements, market drivers, and future outlooks.

📈 Recent Price Movements

📉 Key Market Drivers

• Sharp decline in production estimates due to unfavorable weather during crop development.
• Increased buying interest from processors and traders amid supply tightness.
• Strong consumption from the pharma and health sectors.

🌦️ Weather Forecast & Impact

The weather forecast for key flax producing regions shows mild to moderate rainfall which may impact the harvesting process and potentially delay market arrivals further, sustaining high prices in the short term.

🔮 Price Forecast

Given the current market conditions, prices are expected to remain firm. Short-term forecasts suggest a price range of USD 0.80 to USD 0.88 per kg across major markets.