# Oat price system called dysfunctional | The Western Producer

> Analysts expect Canadian farmers to cut oat acreage by 20 to 25 percent this spring, possibly as much as 30 percent, after a sharp fall in profitability. Oat analyst Randy Strychar argues the pricing system is dysfunctional because cash oat prices are tied to feedgrain markets and the Chicago oat futures contract.

- Date: 2023-02-23 · published 2023-02-23T12:00:00.000Z
- Category: market · region Canada · magnitude low
- Page: https://feedsoft.ai/events/37393-oat-price-system-called-dysfunctional-the-western-producer
- Commodities: [Oats](https://feedsoft.ai/c/OATS.md), [Corn](https://feedsoft.ai/c/CORN.md)

## Why it matters

Expected acreage cuts tighten the outlook for future supply and could set up firmer prices, though the feed-linked pricing model keeps oat values volatile and tied to corn.

## Read by commodity

- CORN: neutral
- OATS: bullish ▲

## Sources

- producer.com: https://www.producer.com/markets/oat-price-system-called-dysfunctional/

---
Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.