Food Industry
Industry: Email Alert RSS FeedRenewable Fuel Demand Providing Spillover Support To Oats Prices.
Resource News International, May, 2006
Byline: Phil Franz-Warkentin, Resource News International
Winnipeg, MB, May 01, 2006 (Resource News International via COMTEX) -- Oats futures at the Chicago Board of Trade (CBOT) have climbed higher in recent days, despite expectations for increased production in Canada. An analyst thought the strength was tied to the renewable fuels sector and the growing demand for corn to produce ethanol. He thought oats prices would have to stay strong in order to ensure the crop doesn't lose acres to corn.
In a little more than a week, oats futures at the CBOT have climbed by 10 to 20 cents per bushel, with the nearby July contract closing at US$1.93 3/4 per bushel on May 1, and new crop December at US$1.82 3/4.
"It doesn't make much sense, in light of...
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