Tight Supplies Underpin Oat Bids; Demand Rationing Expected

Sep 03, 2021

Canadian oat prices should remain well supported over the next year given the smaller crop, but some demand is expected back away as buyers look for cheaper alternatives.

While most of his customers were still taking delivery on existing contracts and not yet in the spot market, Ryan McKnight of Linear Grain in Carman, Man. said Canadian mills and other end-users were already stepping up their pricing. Oats prices have seen a steady rise over the summer, with bids topping out at $6/bu in Manitoba and nearing $5.75 in Saskatchewan.

"The mills will need (oats) but some other non-milling markets will fall away," McKnight said, adding that that while some feed demand is inelastic, the high prices will limit that buying interest. Indeed, some feed markets have already cutting back their purchases, he said.

A Statistics Canada crop production report released earlier this week pegged 2021 Canadian oat production at 3.07 million tonnes, down by 33% from the previous year.

Yield and quality this year is extremely variable, according to McKnight, with virtually all but the lowest test weight crop likely to go for milling. The smaller crop will also likely dent exports, with some eastern buyers possibly even importing oats from Europe to meet their demand, he added.

Click here to see more...

Video: Dicamba Returns for Georgia Farmers: What the New EPA Ruling Means for Cotton Growers

After being unavailable in 2024 due to registration issues, dicamba products are returning for Georgia farmers this growing season — but under strict new conditions.

In this report from Tifton, Extension Weed Specialist Stanley Culpepper explains the updated EPA ruling, including new application limits, mandatory training requirements, and the need for a restricted use pesticide license. Among the key changes: a cap of two ½-pound applications per year and the required use of an approved volatility reduction agent with every application.

For Georgia cotton producers, the ruling is significant. According to Taylor Sills with the Georgia Cotton Commission, the vast majority of cotton planted in the state carries the dicamba-tolerant trait — meaning farmers had been paying for technology they couldn’t use.

While environmental groups have expressed concerns over spray drift, Georgia growers have reduced off-target pesticide movement by more than 91% over the past decade. Still, this two-year registration period will come with increased scrutiny, making stewardship and compliance more important than ever.