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

In the US the Chicago soybean futures market continues to trade higher on tight US supplies. We have seen some Chinese cancellations this week but the volume was insufficient to trouble the market. Beans are being exported out of Brazil at a good pace as the harvest continues.

The news in Europe is dominated by the current situation in Ukraine. The old crop export market for rapeseed out of that country has largely finished but this situation needs to be watched for new crop. Ukraine exports circa 2 mln t of rapeseed into the EU. At present this news has had no fundamental impact on supply and demand as the ports continue to export.

We see traders looking to cover short positions in the European physical market and there has been some interest for UK seed but currently the domestic market remains the better sale for UK merchants.

The MATIF rapeseed futures contract continues to trend higher in line with the firmer global oilseeds complex.