Message to oat growers: Don’t panic.
That’s what oat analyst Randy Strychar of Statcom Ltd. is saying about the present price drop.
“Nothing’s changed here. You’ve got a very short crop,” he said Dec. 10.
March oats futures on the Chicago board of trade dropped sharply Dec. 6 and 7.
Strychar said he expected it to continue for a few days and it is simply a technical correction.
Traders are taking profits after a long upward price run, which is putting pressure on prices.
Strychar said he expected prices to be soft over Christmas, as they usually are, but they should strengthen in January to March.
Strychar said there has been no shift in supply and demand, which can be proven by the stable level of open interest in oats futures contracts.
