Oats Prices Fall Flat During February 2018

February oats prices were marked with little shift in price direction.

The May contract ended February up a little less than 1% with no real direction to speak of.

Canadian trade officials have been crossing oceans to try to get China to make any change in its trade policy. We know that China is going to be importing more oats. And we know that that relying solely on Australia to meet these needs is a blunder in terms of lacking diversification.

China is expected to bolster its imports by 35% over the next five years.

With that in mind, we did focus our attention last month on a few key trends that provide some positive outlook for the sector.

We’re not just saying this to pump sunshine across the page. The trend of food innovation can increase oats demand both in China and the United States. We also looked into where more oats are being grown in Canada.

The issue is that this just isn’t a trend that will fuel radical change to oats prices in the next 18 months.

What Else is Driving Oat Prices?

Last month, we focused on the possibilities for increasing oats demand going forward, but the short-term expectations for continuing low prices. We also looked at:

• Whether there are benefits to higher beta-glucan levels;
• Expectations for the 2018/19 Canadian oats crop; and,
The current trend of increasing demand, but unchanging oats prices.

Moving into the month of March, currency and acreage changes will continue to impact both oats prices. Be sure to sign up for for free 3-week trial at GrainCents as this month could be the most impactful for how and when you price your oats for the rest of 2017/18 old crop supply, as well as a significant portion of your 2018/19 supply.

About the Author
Garrett Baldwin

Garrett Baldwin is a content strategist and editor at FarmLead. He covers the global grain markets and public policy issues related to the agricultural industry. He is a graduate of the Medill School of Journalism at Northwestern University. He also holds a Master’s Degree in Economic Policy from The Johns Hopkins University, an MS in Agricultural Economics from Purdue University, and an MBA in Finance from Indiana University.

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