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

Soybean and canola futures have pulled back slightly over the week on improving weather conditions as we move towards the key month of August. The weather over the next 2-3 weeks should be key to short term market direction.

The MATIF rapeseed futures contract has traded a tight range over the week with little new input.

In Europe we see some early delays to harvest due to rains and trading activity is limited. Crush margins are poor for the harvest period primarily due to weak demand for oil.  We feel price moves over the harvest period are difficult to call but post-harvest rapeseed fundamentals remain supportive.

The euro/sterling exchange rate remains a roller coaster, trading significantly lower early in the week before rebounding late in the week. Further downside risk for the euro can’t be ruled out in the medium term.