Chances are, if you like the look of old crop oat prices your neighbours do, too.
And while the human consumption oat market is steady to increasing, Lorne Boundy, with Paterson Grain, cautions against counting on that to keep prices where they are.
With old crop prices taking off and sitting around $4/bu in southern Manitoba, Boundy says that oats are pricing themselves out of the feed market. What’s more, there were plenty of areas that made milling grade in 2018, meaning that there will be only limited pricing options until about mid-summer, at which point we’ll likely see new crop prices “decay.” (more discussion continues after the player)
Recorded while taking in the first day of Manitoba’s Ag Days, Boundy tells Shaun Haney that farmers thinking about seeding oats this year need to recognize this limited window for pricing, because over-production of the breakfast and pony favourite can happen pretty quickly, driving prices down.
He adds that the oat market is overly sensitive to changes in consumer demands and preferences given the majority of the crop is used in oatmeal, cereals, granola bars and other food products, and that there are a number of buyers requesting oats that have not been treated with glyphosate as a pre-harvest aid so be sure to check with your buyer before you hit the field with a pass this summer.
— Jodee Karlowsky (@AllianceJodeeK) January 22, 2019