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

US soybean futures are higher on the week, with support offered from Asian vegetable oils and primarily palm oil futures.  Physical vegetable oil traders in Europe are perhaps sceptical about potential further gains in the short term, as physical demand doesn’t match futures price moves.

Rapeseed futures have also been pulled higher by vegetable oils, short covering traders and we also see crude continuing to hold above $40 a barrel.  Physical markets have also been busy, with crushers picking up good volumes of old and new crop. With Easter approaching and an USDA report next week, markets could be vulnerable to a pullback as we head into the long weekend.

The euro/sterling rate has reached its highest level in over a year, aiding UK ex farm prices.