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

In Europe the physical market remains slow. Traders are looking to cover short positions and the tight supply and demand situation could potentially continue until the end of April, when we head into MATIF delivery period. Some delayed Australian cargoes will also be arriving in Europe during April. There is a plentiful supply of rapeseed globally, but delays in Australia and Canada have created a short-term tight feel to old crop in parts of Europe.

The MATIF futures market remains volatile and short-term direction is tough to call as we have competing fundamental factors. In the UK a lack of farmer selling for both old and new crop has, like Europe created a tight old-crop feel. New crop is below farmers’ target prices and only a small percentage is sold forward. However, new crop is potentially exposed to further price falls; crops look good across Europe and a large Canadian canola crop will become available, potentially arriving to coincide with the European harvest.