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Purely Canada Foods, a division of Above Food, has voided gluten-free oat production contracts with about 30 farmers in northeastern Saskatchewan. The company cited force majeure after its contracted processor failed to deliver certified gluten-free conversion capacity.
Affected producers could lose an estimated $4 to 5 per bushel.
Loss of 21,000 tonnes of contracted gluten-free processing capacity removes a premium outlet for oats, pressuring farm-gate oat values in Western Canada. Feed buyers may see more oats available on the open market, a mild bearish signal for oats.
producer.comRobert ArnasonMar 6, 2023After 13 past logistics events, OATS moved a median -1.9% over 5 sessions (23% higher; middle half -5.2% to -0.6%), and +1.5% over 20.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
