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Chicago oat futures rallied as heavy rain and flooding hit parts of Saskatchewan, Manitoba and other Prairie areas, which together grow much of Canada's oat crop. Deliverable oat supplies at the CBOT fell sharply, from 479 registrations on June 23 to 42 by the reported Tuesday, adding to the gains.
An analyst said the rally may be short-lived because prices are near key moving averages.
Canada supplies a large share of world oats, so weather damage and tighter deliverable stocks support prices and raise the cost of oat-based feed, though the rally may fade.
farmtario.comJade MarkusJul 13, 2016
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country-guide.caJade MarkusJul 13, 2016
manitobacooperator.caGFM Network News, Jade MarkusJul 13, 2016After 68 past bullish weather events, OATS moved a median -0.8% over 5 sessions (47% higher; middle half -3.6% to +3.9%), and -0.3% 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.
