Better than expected conditions during the US soybean harvest and news from the UN Food and Agriculture Organisation that worldwide crop prices have dipped slightly have done little to ease pressures in the oilseed markets.

Soybeans have continued to come under pressure this week with managed money funds exiting positions. Last Friday the USDA reported higher than expected ending stocks figure, and yield forecasts were revised upwards this week by US analysts. With the US soybean harvest around 40% complete, we continue to see farmer selling in the US and reports of better than expected yields.

Planting conditions in South America have been reported as good this week with an increase in rainfall. We expect to see the recent volatility continue as we head into next week’s USDA S&D report. Weak economic data from China has also added a bearish tone to the soybean market.

The MATIF rapeseed market has been volatile this week with daily price moves of €8-12 making a difficult and unpredictable market to trade. As a result, the UK market has been very quiet. Rapeseed has continued to edge lower throughout the week following soybeans and palm oil. Although prices could be pressured further in the USDA report next week, underlying fundamentals remain bullish.