Agricultural futures and ETFs are showing some explosive movements. The oats and wheat markets are making significant gains after the Independence Day holiday.
While soybeans shot higher last Friday and Monday, wheat and oats are seeing sizable gains due to dryness concerns in spring wheat areas and a slow HRW harvest. After opening higher, corn and soybeans are down due to profit-taking after hitting resistance levels and light post-holiday trade.
On the Chicago Board of Trade, September Wheat is trading up over 3.70% at 665-3/4 cents on Wednesday. September Oats rocketed over 5% to reach 407-1/4 cents as of 1230PM EST.
Agricultural markets can be an interesting play for savvy investors looking to diversify portfolios. Some experts are projecting significant growth in the future.
According to advisory firm Motor Intelligence, “The global oats market is projected to witness a CAGR of 4.80% over the next five years. The changing lifestyle of consumers, including the decision to opt for light and healthy meals, is driving the demand. The high nutritional content of oats is the major driver of the market. Additionally, an increase in preference for healthy meals and demand for convenience food drives the oats market. Also, its added functional properties enhance its usage by consumers. It is witnessed to be consumed majorly as a breakfast food.”