Jonathan Lane, Gleadell’s trading director, comments on the OSR market

The US soybean market remains range-bound, having bounced off its recent lows. Weekly USDA crop ratings have pegged crop conditions below the average and below levels at the same stage as last year. But there is still plenty of time to go and it is far too early to get concerned about the crop just yet.

In Europe chatter about dry weather in the east having a detrimental effect had some shorts running for cover and this, combined with some crusher buying following oil business, was enough to lift Matif futures prices from their recent lows.

Despite this, harvest positions are still likely to be over-supplied, with old crop Australian imports arriving in July just as the European combines start to roll.  

Closer to home, the election, Brexit and the subsequent crosswinds continue to buffet our currency, creating ongoing uncertainty.

From a fundamental point of view the crops in the field look full of potential, which, if realised, could see harvest values undermined by logistical pressure. That said, if sterling continues to slide this could cushion any declines in UK farmgate prices.