Domestic use is expected to increase and carry-out stocks are expected to increase to about 0.45 Mt. Due to the high volume of Canadian production which is exported, exchange rates have a strong influence on Canadian prices. The Canadian dollar is expected to appreciate relative to the US dollar and the Euro. Prices will also be pressured by increased stocks of flaxseed and lower prices for alternative oilseeds. Linseed oil competes with petroleum products in the industrial market. Flaxseed meal is priced relative to its protein content, about 35 percent, compared to canola at about 36 percent and soybeans at 48 percent.
Linseed oil is an amber-colored oil extracted from linseed, the seed of the flax plant.
The oil obtained from hydraulically pressed seeds is pale in color and practically odorless and tasteless. However raw linseed oil oxidizes quickly if not stored properly and becomes rancid. Oil that has been boiled or extracted by application of heat and pressure is darker, with a bitter taste and unpleasant odor. Linseed oil is used as a drying oil in paints and varnishes and in making linoleum, oilcloth, and certain inks. Industrial demand for linseed oil has dropped significantly since the 1950s largely due to inconsistent supplies and to the increased use of water based paints and petroleum based floor coverings.