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| In the old days I was frequently also told "gentlemen do not trade oats.'
I have, in the past, traded lots of oats. Would usually lie in the weeds & wait for some extra-ordinary situation in the May Future and frequently took delivery.
In the old days almost every hog or poultry feed ration contained 50 lbs of oats per ton. In pelleted feed products, oats added a binder effect. In addition ground groats and rolled oats were a significant ingredient in pig starter & whole ground oats for sow feed rations (also those pesky horses). Plus, the large players in the quantity for human consumption.
Beginning in the late 1970's the market began to be dominated by the folks who manufacture Cheerios. And, I mean DOMINATED. Additionally, the market became a 'Minneapolis' item subject to 1) whims of a couple folks and 2) whether or not the deliverable supplies in Mpls actually existed and/or were committed. Naturally, one would assume if the oats are listed as being in inventory & barge ready....the oats would be in the bin; I recall a couple of times when the oats were not in the bin.
In recent times oat imports out of Scandinavia have become an influence & it has become a largely commercial market with little speculative following as the big boys cannot get in and out with any size.
I agree, in the old days, oats were a strong early indicator. One of the largest oat traders in the world was the former milkman from Atlantic Iowa. I believe he is deceased. I doubt the validity today due to the change in the structure of our markets. Brings back memories however. Some good, some ugly. | |
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I'm not happy about oats.
