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

CBOT soybean futures continue to look technically weak but as yet have not moved aggressively lower. With weather currently looking benign, the bean market lacks any bullish story.

The MATIF rapeseed contract has moved sharply lower throughout the week with the May futures contract falling roughly €15. There has been some farmer selling across Europe and poor crush margins, but with prices moving lower farmer and merchant selling have almost ceased in the UK. In view of the European balance sheet it’s hard to make a bullish story for old crop rapeseed but equally will we see farmers throwing in the towel and selling at these levels?

The euro came under continued pressure early in the week, but there could be some market support in the offing as a lot of negative news for the euro/pound exchange rate has been priced in.