Oats – Weekly Strategy Market Update, 6 August 2018
Canola futures have pushed higher on the back of strengthening soybean values. The market has already factored in the trade impacts of the US/China trade war. US Soybean values are at huge discounts to Brazil, China is the biggest importer of Brazilian beans and EU are buying record levels of US beans.
Domestic production is down, we have seen a switch from Canola to Barley, low plant density off the back of late cropping in the season, damaging winds in the south and require further rains in parts of South WA. We are confident and supportive of solid prices moving forward for new season, and are expecting further upside in the market. If you are still holding old season grain we recommend having indicatives in place, as we have seen old season strengthening off the back of new season values.