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

A crazy half hour followed the USDA report as its very unexpected higher yield numbers took traders and analysts by surprise. The trade was anticipating a cut in yield so the increase in production wrong-footed the market. Funds dumped millions of tons of beans and CBOT soybeans were down around 60 cents or circa 6% in a matter of minutes.

MATIF rapeseed followed beans lower, down around €9 on the day. Short-term direction is now hard to call with volatility high. Longer term, rapeseed fundamentals remain mildly supportive with a lower global crop figure but, at present, soybean volatility could dictate market direction.