Oats Market May Outperform Larger Grains Amid Tighter Supplies

The grain markets have been strong lately, with Corn, Wheat, and Soybean all making new 52-week highs this month. This surge in prices has pulled up the smaller Oats market.

While the larger grains are trading near their highs, the Oats market is still only at a 50% retracement off its lows. As a result, it may have more room for growth on the upside.

A recent annual pattern of decreased Oats acreage has led to tighter supplies, which could help maintain Oats' strength relative to the bigger grain markets.

The DEC Corn-Oats Spread (ZCZ26-ZOZ26) settled below both its 14-day and 21-day moving averages on September 10th and again on September 11th. It has not traded above these averages since then.