Higher export expectations bearish for oats
USDA forecasts increased Canadian oats exports to the United States. Will the oats prices continue declining?
The US Department of Agriculture forecast 20 percent expansion in global oats trade by 2019/20, due almost entirely an increase in Canadian exports to the United States. Canada now supplies 95 percent of total oats imports for the United States, according to Grain: World Markets and Trade report of USDA. As a result of uncertainty in rapeseed trade with China, some growers have shifted away from rapeseed to grow more barley and oats. And a jump in Canadian oats production and subsequent expansion in exports will go to US market in the south. Higher supply estimates are bearish for oats.
On the daily timeframe the OATS: D1 is below the 200-day moving average MA(200) which is declining .
Technical Analysis Summary
Order Sell
Sell stop Below 257.4
Stop loss Above 273.1
USDA forecasts increased Canadian oats exports to the United States. Will the oats prices continue declining?
The US Department of Agriculture forecast 20 percent expansion in global oats trade by 2019/20, due almost entirely an increase in Canadian exports to the United States. Canada now supplies 95 percent of total oats imports for the United States, according to Grain: World Markets and Trade report of USDA. As a result of uncertainty in rapeseed trade with China, some growers have shifted away from rapeseed to grow more barley and oats. And a jump in Canadian oats production and subsequent expansion in exports will go to US market in the south. Higher supply estimates are bearish for oats.
On the daily timeframe the OATS: D1 is below the 200-day moving average MA(200) which is declining .
- The Parabolic indicator gives a sell signal.
- The Donchian channel indicates no trend yet: it is flat.
- The MACD indicator gives a bullish signal: it is below the signal line and the gap is narrowing.
- The RSI oscillator is rising but is below the 50 level.
Technical Analysis Summary
Order Sell
Sell stop Below 257.4
Stop loss Above 273.1