Overall the commodities complex has gotten hammered in May with many front month commodities futures contracts seeing double digit declines. Oat futures have been one of the harder hit commodities with an 18.6% decline for the month, making it the third worst performer.
The monthly decline in oats would have been even larger had there not been a 4.1% one day relief rally today. However even with today's action, Oat futures are now down over 26% since the beginning of 2011 and are now below the lows of the past 17 months.
The reasons for the decline appear to be twofold: 1) another flare up in the European crisis which has been driving down asset prices across the board, and 2) above average warm weather which has been driving down the prices of many of the agricultural commodities, particularly oats, cotton and FCOJ.
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