W3 Oats Update: Anticipated Surge in Global Cereal Production for 2023/24 Season Despite Downward Revision in Oat Forecast

Global Oats 2023/24 Season Production Forecast Revised Downwards

In its Jan-24 report, the United States Department of Agriculture (USDA) adjusted its previous forecast for world cereal production for the 2023/24 season, revising it upward by 13.7 million metric tons (mmt) to a new total of 2.298 billion metric tons (mt). However, within the coarse grains category, the USDA revised down oat production by 1.1 mmt, bringing the total to 19.4 mmt.

Bashkiria's Grain Sales Soared in 2023, Doubling Volume

In 2023, Bashkiria, Russia, witnessed a notable surge in grain sales to the domestic market, with sales more than doubling. The number of regions purchasing Bashkir grain also nearly doubled, expanding to 23 regions. Bashkir wheat was in high demand in the domestic market, constituting the majority of sales at 261.4 thousand mt. In addition to wheat, other grains and seeds, such as oats, were also sold, with oats accounting for 2.39 thousand mt.

Mexico's 2023 Oat Imports Surged by 27% YoY

Mexico achieved a record import of grains and oilseeds in 2023, acquiring 40.3 mmt, representing a significant 5.9% year-on-year (YoY) increase. Among the grains that garnered attention for their potential in livestock production, oats experienced a significant surge. Oat imports increased by 27% YoY from 198 thousand mt in 2022 to 252 thousand mt in 2023. This indicates a substantial uptick in demand for oats in Mexico during the specified period.

Cereal Prices in Spain Unaffected by Red Sea Crisis and Logistical Disruptions

The Red Sea crisis and the associated logistical disruptions in trade have not had an impact on cereal prices. The grains in question include wheat, corn, barley, and oats, which continue to be transported through alternative routes unaffected by the crisis.