Oats Drift Down

Oats, which are one the cheapest of all commodities traded in the U.S., have continued to decline in value since making a record high back in 2014. The long fall, which began at $6.00 per bushel, has cut oats to a low under $1.60 in recent weeks.

Global oat harvests have boosted supplies of the grain, alongside abundant corn, wheat, and soybeans. An old trader’s adage is “corn follows oats,” a warning sign that corn prices could have even farther to fall. Back in 2005, the last time that oats were at the current price, corn fetched under $2.00 per bushel, a far cry from Friday’s value of $3.38.