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    #1

    OATS

    I heard there is some good contracts out there for New Crop oats. What do you think will happen with the oat market?
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    #2
    The question on oats and feed grains is tough one this year. It is a year you will either be right or ugly wrong - no in between.

    What I can tell you is that new crop offers of over $2/bu are resulting in lots of contracting - particularly in Manitoba and S.E. Saskatchewan (sounds like Peace River farmers are also booking this price). Oat acres will be up in western Canada.

    The next question comes down to weather this spring/summer. Amount of oats pastured/harvested as green feed will be the first issue. Yields will be the second. Quality will be the third.

    My thoughts are to stage in sales at over $2/bu (depending on location) with a third of realistic 2002 production a good target. Make sure you understand the quality you are committing to in the contract and the spreads if you are not able to meet it.

    Others thoughts.

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