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

The US soybean market has rallied, led by strong meal demand and supported by some dryness in Brazil and some technical buying. The price has risen over $1 per bushel from harvest lows, although given the size of the US soybean crop it is hard to envisage a sustained upturn.

The MATIF rapeseed contract has followed soybeans upwards, breaking out of its three-month trading range. In the EU we have seen only limited farmer selling recently, but now we are approaching target levels. In our opinion the market has seen the modest gains we were looking for and upside from here is likely to be reasonably limited. With ex-farm prices about £40/t above harvest lows, we see this as a good opportunity to start putting some sales on the books.