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Oats, also known as common oat, is a type of cereal grain which is grown for its seed. It’s two most common uses are consumption for humans and feed for livestock.
Oats have several uses when it comes to foods, they are most commonly rolled or crushed or grounded into fine oat flour. Oats are most commonly eaten in the form of porridge, but it can also be used in various baked goods, like oatcakes, oatmeal cookies and oat bread. They are also key ingredients in many cold foods such as muesli and granola.
Oats were first manufactured in Britain in 1899 where the first oat bread factory was established. In Scotland oats were and are still very much held in high esteem as a foundation in their national diet. In Scotland people would soak the husks of the oats for a week so that the fine flour part of the meal continued as sediment that is to be strained off, boiled and then eaten. Oats are very useful in making soups thicker similar to barley and rice. Oats, as well as for humans, are used to feed horses to give them an extra boost of energy. The oats maybe crushed, rolled or crimped for horses making it easier for them to digest or can be fed whole. Cattles are also fed oats into coarse flour using a roller mill, burr mill or hammer mill.
Due to commodity contracts being customised, each price movement has its own value. A one cent move in oats is almost equal to $50 in an oats contract. When determining the CBOT’s oats profits and loss of figures, you are able to analyse the difference between the contract and exit prices and then multiply the results by $50.
Oats tend to be grown in the spring and early summer seasons. In saying this, oats can also tolerate the cold temperatures, and are still capable of yielding a good harvest. Around 50% of harvested oats are used for hay, with the other half being used for grains.
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