According to recent information available, it has been revealed that oats futures at the Chicago Board of Trade have been creeping higher, which a based analyst attributes in increasing the demand for minor feed grains. As per the data from Canada and the U.S. project it indicates that the oat yields has been increased from last year, which are capping gains, but at the same time, the demand picture has also improved. Sorghum and barley commitments are mostly above the five-year average, which indicates a stronger demand for minor feed grains, including oats, as stated by Mr. Terry Reilly, senior analyst at Futures International.
Further, a weaker Canadian dollar is lending a hand to Canada’s oat exports, as it has been narrated. There are also indications that so far, the demand for Canadian oats has stayed near-steady with last year’s pace. As of Nov. 2, Canada has exported 324,200 tonnes of oats, as compared with 318,500 tonnes during the last year, as reported by the Canadian Grain Commission. Further, in this regard, a Manitoba merchant disclosed that a lot of its oats are going to the U.S. and Mexico and demand is steady and strong as told by Mr Jarrod Firlotte, general manager at Emerson Milling. There are a lot of grains and oats which is just keeping pace.
Furthermore, the CBOT December oats contract broke above the 100-day moving average to close at US$ 2.4775. The December oats contract could test the 200-day moving average of US$ 2.54 a bushel, but oats are still relatively weak as compared with corn, it was added. Manitoba’s cash prices have stayed steady despite movement in futures markets, and we have got enough oats which were bought and so we do not really have to go and chase it.