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

Soybeans have weakened this week as the Brazilian harvest continues. Early reports are of good yields, which should help alleviate tight nearby supplies.

In Argentina the weather has improved but the political uncertainty regarding the currency, inflation and export taxes raises question marks as to how many beans Argentine farmers will sell.

The trade also expects that some Chinese purchases from the US will be switched to South America, which could further pressure futures contracts.

The MATIF rapeseed continues to trade in a narrow range with little new input. In Eastern Europe the temperature has dropped but, with good snow cover, crops do not look to be under threat. The new crop market has seen some activity, but farmers have not yet sold in any volume compared with historical levels.

In the UK more seed is coming forward from farms though levels also remain well below normal. The strength of sterling continues to weigh on UK prices and farmers are correct to continue to hedge old and new crop as the threat of a weather problem begins to diminish.

Some farmers have sold little or no old crop but this looks an unwise marketing strategy as price could fall further without a change in the fundamental picture.