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Opportunities In Oats?!


Oat prices have been near record levels this winter! The future markets for September are above average. There is renewed interest by Quaker Oats in "quality" Ontario oats for milling in Peterborough. The key word is quality! The first question asked by growers is "what if my oats don't make the grade"? And what is the grade?

Quaker Oats needs milling oats with good test weight (38 lbs. per "winchester" bushel), large kernel size, high groat yield, high protein content and low oil content. In Ontario, varieties with millling quality are AC Goslin, AC Aylmer, Ida, Assinaboia, AC Francis and, new for 2003, AC Vermont. Groats must be a bright, natural colour and free from other grains, foreign material, grain insects & mites. Table 1 lists requirements, along with an example milling oat discount schedule. Another market opportunity for oats is the premium feed trade. The premium feed oat market also has quality requirements. Table 2 lists the specific requirements and an example feed oats discount schedule.

The feed oat price is determined by local supply & demand more than most other grain and oilseed crops. Note the large discounts associated with weathered oats! Harvest as soon as the crop is ready to avoid any potential weathering.

For pricing information, check out the Oat & Barley Council of Ontario's website and look under Market Information for prices and elevations receiving oats.

Table 1 - Milling Oat Discount Schedule *

Moisture

Discount

Test Weight

Discount

13.0%

0.00

40.0

0.00

13.5%

2.00

39.0

0.00

13.6%

3.00

38.0

0.00

13.7%

4.00

37.5

1.00

13.8%

5.00

37.0

2.00

13.9%

6.00

36.5

3.00

14.0%

7.00

36.0

4.00

above 14 %

reject

below 36.0

reject

Max 10.0 % small oats allowed (pass through 5/64 x 3/4 slot sieve)
Max 1.0 % Barley allowed. Max 1.0 % Wheat allowed Max 1.0 % wild oats
Max 1.0 % Canola allowed. Max 0.2 % heat damage
Groats must be bright natural colour
* Example only. Check with your elevator for specific discounts.

Table 2 - Feed Oats Discount Schedule

Moisture

Discount ($/t)

Test Weight

Discount ($/t)

13.0%

0.00

40.0

0.00

13.5%

0.00

39.0

0.00

14.0%

0.00

38.0

0.00

14.5%

1.00

37.0

2.00

15.0%

2.00

36.0

4.00

15.5%

4.00

35.0

6.00

16.0%

6.00

 

 

above 16 %

reject

 

 

 

 

Slightly Weathered

15.00/mt

 

 

Weathered

25.00/mt

Max 1.0% Barley allowed. Max 1.0% Wheat allowed
Max 1.0 % Canola allowed. Max 0.2 % heat damage
Max 1.0 % Wild Oats

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