Jonathan Lane, Gleadell’s Trading Manager, comments on the OSR market

Strong US internal demand is keeping physical soybean prices relatively high for nearby positions but new crop bean prices continue to weaken. Although the South American harvest has gone well there is still an on-going issue in Argentina with farmers unwilling to sell beans in view of the value of the peso against the US dollar. The focus will now begin to shift to US plantings.

The physical rapeseed market has been fairly quiet this week with public holidays across Europe. However, the August 13 MATIF contract has lost around 9 euros this week on thin volumes. In the UK the old crop market remains very illiquid with the only real trade being merchant to merchant trade. We still have a lack of new crop activity across the Continent with prices unattractive to both buyers and sellers.

Crush demand remains weak with margins poor for both old and new crop.

Sterling has remained relatively firm against the euro this week and at present all current news points to that remaining the case for the short term.