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

CBOT soybeans have firmed over the week, trading towards the top of the recent range. There is little new fundamental input but we see some fund short-covering as grain markets gain some support from firmer crude.  

Matif futures have traded higher, supported by a weaker euro/dollar rate, crude and firmer soybeans. We also see a short term reversal on the Matif, which has probably encouraged some short-covering in the futures market.

The UK physical market is quiet; we have again reached target farmer levels of £260/t for old crop, but only small volumes came forward. UK crushers remain reluctant buyers and export business increases with German crushers buying old and new crop UK seed.

The euro/sterling rate remains volatile. UK ex-farm values have lost £2-3/t purely on currency, offsetting the slight reduction in futures values.