The UK is Europes largest linseed grower and unofficial estimates predict this years linseed area to be 200,000 hectares – double what it was in 1998.
One of the main reasons behind the significant rise in plantings can be seen in the higher area aid payment for linseed in comparison to other crops, noted the Home Grown Cereals Authority (HGCA) in its recent MI Oilseed News.
With the depressed oilseeds and grain markets the prospect of a subsidy worth £460/ha encouraged many producers to grow linseed this year.
However, on the prospect of this bumper harvest prices are not expected to recover.
“Theres plenty of linseed around and I dont anticipate theyll improve unless the rest of the oilseeds improve – and thats not likely,” said Heike Hintze, economist at the HGCA.
Delivered values to Hull/Selby for September are £117.25/t and £119.25/t for October to December.
As the harvest progresses producers are selling their linseed rather than store it, said Peter Daubly of BDR Agriculture.
Ex farm values in Lincolnshire are currently £92/t or £90/t for prompt movement.
Mr Daubly had expected growers to plough their in their linseed rather than harvest it although the recent good weather has meant that farmers have harvested instead.
He expects prices to fall but said it would be impossible to say by how much.
Mr Daubly believes the Canadian harvest will be the biggest influence on the linseed market which is expected in late October or early November.