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

The Nov 13 MATIF futures contract has traded in a €10 range over the past week. While the downward momentum has paused this week, the question now is can the market fall below the €350/t level and continue to trade lower? The market gets harder to call from here but we feel downside risk still remains.

The harvest continues in Europe and we see large volumes being offered in deferred months, which is helping to cap any price rises. There is a risk that when the grain harvest starts we could see another wave of selling across Europe as storage space is needed.

In the UK the market is fairly quiet as the trade awaits harvest to get into full swing. The UK farmer remains a reluctant seller of rapeseed at current levels but, with large volumes being offered out of mainland Europe, domestic prices could be capped in the short term.

In the US good weather continues in the key soybean growing areas and everything currently points towards a large bean harvest. Soybean futures are trading lower.