Quality Oats Tight in Australia

DONALD - Mar 13/01 - STAT -- Stocks of good quality oats have tightened considerably in recent weeks in Australia, resulting in shortages of New South Wales, Victoria and the state of South Australia.

Malcolm Bartholomaeus of the Callum Downs Commodity News report noted national "oat production has fallen well below 5 year average levels in the last two seasons, with domestic consumption and exports eliminating any rolling stocks going into this year’s harvest."

The current season's oat harvest came in at an estimated 1,292,000 MT, a dramatic improvement from the 1,092,000 MT harvested in 1999; but well behind the 1998 harvest of 1,874,000 MT and the recent five year average of 1,508,000 MT.

Bartholomaeus said while export values are putting a floor in milling oat prices at around A$135 per metric ton (MT) or U.S. $69 MT delivered port, domestic demand is pushing the market up above this level.

"At this stage if oats have to move from central New South Wales into the Melbourne market later in the year, Melbourne prices will have to be at least A$160 (or U.S. $81 MT) to make it work."