Oats are struggling right now in what's looking to be a competitive animal feed market.
That's the outlook being given by Neil Townsend, Senior Market Analyst at FarmLink Marketing Solutions.
"It's very heavy right now. That being said, I would say that based on a historical five-year average of what the export demand has been, things might improve a little bit toward the second part of next year. Oats will also pay attention to what's happening in the corn and other feed grain markets, so it's not a completely isolated situation."
Other crops are more likely to give the kind of flexibility in selling that farmers would be looking for.
"I think there are other crops that probably offer you better, more fluid movement, more selling opportunities. I just want to say, if you are growing durum, wheat, anything in western Canada," said Townsend, "You've got to start your selling cycle soon because you've got to lock in some profitability."
Since oats are linked to corn through feed prices, other crop valuations should be in the headlights for those looking at oats.
"One of the things is if this corn yield hits at 180 and above, that's trend yield, there's a possibility that does happen," said Townsend, "There's a strong possibility of a stronger version to mean, which means the prices go back towards more of the average so when you see some profitability, incrementally sell into that even if it's 10 or 15 per cent.
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April 15, 2023 at 04:08AM
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Oats struggle in competitive animal feed market - HighRiverOnline.com
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