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EU Demand Drives Canada Flax Oilseed Prices to One Year High

Buyers in the EU are turning to Canada for their flax oilseed supplies after shunning shipments from Russia that contain haloxyfop, an herbicide made by Dow Chemical.

The EU, which is the second largest buyer of flax after China, cut its acceptable levels of haloxyfop by 90 percent last June due to safety concerns about it reaching the food supply.

In 2009, the EU blocked Canadian flax imports when GM flax was detected in shipments. Since then, many Canadian farmers opted for alternative, more profitable crops such as canola. This jump in demand and tighter supplies have driven Canadian flax prices to their highest in a year at between $12 and $13 per bushel, and will leave supplier including Richardson International, Glencore, and Viterra scrambling to fill orders for delivery in the spring.

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