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

Soybean prices have been hit extremely hard this week, losing around 75 cents/bushel (circa £16/t) following Monday’s USDA report. USDA increased soybean ending stocks and planted acreage for beans and, with weather looking favourable, the market has taken on a negative tone.

As we move into the European harvest rapeseed prices have weakened over the week. The European farmer is undersold coming into harvest and crops look good in almost all countries. Currently we see no problems across the world and we should have ample rapeseed supplies globally. European traders are anticipating a wave of selling during harvest with farmers needing movement and cash.

In the UK the situation mirrors mainland Europe. Farmers have sold a lower percentage of a bigger crop but many require movement and finance. The strength of Sterling also continues to have a negative effect on prices. Currently there is little bullish news for prices, but we have had a large downward move so we now have a more cautious view on short-term price direction.