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

The unexpected change in the US bio-diesel mandate last week, combined with the jump in crude oil prices after OPEC’s agreement to reduce output, has given support to the vegetable oil market and underpinned rapeseed prices on the European futures exchange.

However, sterling’s sharp upward move against the euro has more than offset any momentum for UK farm gate prices.

Farmer selling in the UK market remains slow and the crushers have been looking to other origins to ensure they have supplies going into the new year.

We understand that at least one 60,000 cargo of Australian rapeseed is on its way and some French cargoes have also been bought for the new year.

UK rapeseed supply is tight and prices have firmed, but with UK prices now at a level that can attract significant volumes of imported rapeseed, the crushers are not going to chase UK supplies at these values.

Given sterling’s continuing appreciation in value, it may be time to cash in on any unsold stocks.