European hemp grain supplies ‘spent’, says Canxchange Q2 report


European hempseed supplies are close to exhaustion, with around 25 tonnes remaining at a price of around €1.25/kg, according to the second quarter 2022 benchmark report from commodity platform Canxchange.

“We have seen a last ditch attempt by food producers to stock up as much as possible, but the supply has run out,” according to the report released today. Canxchange said traders on its marketplace are looking to take in large orders from the 2022 fall harvest, indicating demand will pick up next year.

Higher prices to come

“This will lead to even higher prices,” the report suggests, warning that rising fuel and fertilizer costs are also contributing to the upward pressure.

Canxchange also said it has started receiving inquiries about hulled hemp seeds despite the high costs of these products, which currently sell for around €7.5/kg.

“This is something we haven’t seen in recent seasons due to the high price of the product, but it seems as the market has started to open up and education on hemp has improved, there are finally players entering this space,” Canxchange said.

India interest

The London-based cannabis trading platform reported that it had seen a growing number of hemp seed inquiries from Indian growers amid growing domestic demand for hemp seed foods in this country, but warned that exporting to India can be difficult.

“It is always a complicated task to import anything related to hemp into India, however, local companies are trying to work out an import plan with customs and local government,” according to the report. “Given India’s long history with hemp and the lack of local production, we are confident that these problems will disappear in the near future.”

Canxchange has identified France, Russia and Germany as the top hemp grain suppliers based on storage location.

Hurd canceled orders

Demand for hemps (shivs, shives) for building materials and animal bedding continues to rise globally, Canxchange said, noting growing interest in South Africa, which does not produce such products.

“South Africa . . . is actively sourcing shives from the EU to expand the hempcrete and hempblock business in the southern hemisphere,” the report notes.

Canxchange also said suppliers who had previously reported that their stocks had run out had seen some orders canceled due to financial constraints caused by the global financial situation. These companies are now offering hurd at significantly reduced prices, the report says.

While demand for technical fibers has remained stable among insulation producers, Indian textile producers are showing growing interest. Most of these companies already source fiber from EU suppliers, but continue to investigate Europe with an eye on quality and price.

Extract prices are stabilizing

The quarterly report says prices for European isolates appear to have bottomed out in the mid to low €300s, with some US producers offering prices in the high €200s. “But with logistics costs particularly high at the moment and customs risks still in play, market players seem to prefer dealing with products landed from the EU,” the report suggests, noting that cheap biomass of origin American “started to fade”. many American farmers have given up on growing hemp for the cannabinoids, which has slowly driven prices up.

“We are confident that this trend will continue and that prices will start to reach €300 within the next six months,” observes the report.

As distillate prices stabilized in the United States following production cuts, EU producers began to lower prices for this extract. According to the report, a rebound in distillate prices could be on the horizon as raw materials for extraction begin to become more expensive amid shrinking biomass supplies and rising energy costs.

Minor cannabinoids

Canxchange also noted “a very sudden interest” in synthetic hexahydrocannabinol (HHC) among cosmetics and vaping product buyers, with prices dropping to around €2,000/kg for EU products. The prices of other minor cannabinoids have remained stable over the past few months, CBN stocked in the EU at €2,300/kg and THCv at €26,000-28,000/kg.

In other findings from the Canxchange Q2 2022 Benchmark Report:

  • Uncertain economic conditions, including high inflation which impacts production costs, mean that farmer sentiment towards hemp remains bearish, especially among larger growers.
  • Germany’s lead in medical cannabis has been a major driver for the entire cannabis industry in Europe in recent months.


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