What Market Fundamentals Can Affect The Oats Futures?
The top five oats producers are: Russia, Canada, United States, Poland, and Finland. Oats are
a versatile field crop. Oats can be grazed as a forage or harvested for grain. Oats have a high feed value, and oats are useful
in crop rotations. When you are considering a trade in oats market some of the basic fundamentals that you should consider
1. Weather Weather affects yields, and therefore it is a major factor
that affects the price of all grains including oats. Oats have a lower summer heat requirement and greater tolerance of rain
than other cereals like wheat, rye or barley, so are particularly important in areas with cool, wet summers such as northwest
Europe. Oats are very cold tolerant, but not freeze proof. Freeze damage can occur when warm late fall or winter growing conditions
are followed by sudden extreme temperature drops.
2. Oats Diseases Oats
are susceptible to a large number of diseases that may damage or totally destroy individual fields. Among those causing severe
direct damage are crown and stem rusts, leaf blotch caused by Pyrenophora spp. and Septoria spp., and BYDV. Oat diseases can
cause severe economic losses because of their effects on yield and quality of grain and forage.
3. Health Benefits Medical research that has shown the heath benefits of oats has boosted the demand for
oats. Oats are an excellent source of iron, dietary fiber and thiamin. They also contain antioxidants that are believed to
protect the circulatory system from diseases such as arteriosclerosis, which affects the arterial blood vessel. Oats help
stabilize blood sugar, reduce cholesterol, regulate the thyroid, and soothe the nervous and digestive systems.
4. The Relative Price of Competing Crops As a feed grain, oats pricing tends to run in line
with corn. The oats market will often track changes in corn production and demand. Therefore, by looking at the price projections
for corn you can attempt to estimate future price movements of oats. Some traders prefer to trade the oats market over the
corn market because it is less volatile, and the margin requirements are lower.
are just some of the basic fundamentals to keep in mind when you are considering a trade in the oats market. Before opening
up a commodity account to trade oats you should consult with a licensed commodity broker that follows the oats market to discuss