Oat market driven by feed no more, says analyst

The oat market is somehow managing to garner positive attention, even as “burdensome, massive oat supplies” weigh on the market.

Randy Strychar, president of Oatinformation, presented at CropConnect in Winnipeg, Man., this week and says barring a major weather event, it will take 18-24 months to chew through the current large oat supply.

But despite the huge tonnage out there drawing down market prices ahead of the spring season, Strychar says the oat market overall is booming.

Oat growers are no longer reliant on the feed market, he says, as oats has established itself now as a “boutique food commodity.” A full 70 per cent of oats now goes in to commercial channels, though lower prices may see some more demand creep in from the feed side in the months ahead.

“For the rest of the next seven months of the crop or six months of the crop year, we’re going to have a real struggle to get those feed numbers come up, which is the only way you’re gonna get those ending stock numbers down quickly…and there are limitations on that,” he says. There will be some variation in the demand numbers overall, he adds, but “the growth is here to stay.”

For the full discussion with Strychar, including a discussion on pricing models, price signals, and market intelligence, click below: 

Related: See all our coverage of CropConnect here!

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