Oats and oat flakes set new price records

In August, food oats prices reached all-time highs, having kicked off high for the 2020/21 grain season. The reasons:

• Another, third in a row, reduction of oat crops
• Extremely unfavorable weather conditions in the regions - the largest producers, primarily in the territories of Siberia.

This macro-region traditionally accounts for about 40% of oat production. In addition to the reduction in gross harvest, a significant decrease in the share of cereal-grade oats in the current year's harvest is expected.

Oatmeal prices in the final 2019/20 cereal season (September-August) were mainly growing following the prices of raw materials, setting new records. In the 2020/21 season, oatmeal and cereal producers will have to compete for quality oats. Thus, most likely, prices in this segment of the cereal market will remain at a high level.