📈 Kazakhstan’s Flax Prices Reach Record Levels. What’s Next?  

The Kazakh flax market is facing a paradox once again. On the one hand, experts predicted an increase in production at the start of the season, and they were right. On the other hand, despite the expected harvest volume, the market supply remains low. Analysts from Agrosearch.kz investigated where the oilseed reserves have gone and what market participants should expect next.

 Traders and exporters describe the situation as one with limited supply. Farmers across all regions of Northern Kazakhstan confirm that a significant portion of flax remains unharvested.

 The main reason is high humidity. During the harvest campaign, farms initially focused on grain and then turned to oilseeds as a secondary priority. Additionally, by October, elevators were already filled with wheat, forcing farmers to leave their crops in the fields to avoid spoilage.

 This means that next year’s sowing season will begin with harvesting. It’s worth noting that a similar situation occurred in 2015 and 2018.

 However, respondents highlighted that the quality of this year’s harvested flax is good, which is an improvement over last year’s crop.

 The current demand price for flax stands at 200–210 thousand tenge per ton, including VAT. This price level was last seen in October 2020. Back then, prices gradually increased, reaching a historic high of 300 thousand tenge per ton in March 2021, which remained stable until the end of June.

 As for exports, shipments to Europe are hampered by transit restrictions, while exports to China face ongoing logistical and planning issues. As a result, trade has yet to operate at full capacity.