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

Brazil’s national crop agency CONAB cut the country’s soybean crop by 2.1 mln t. This, and USDA reducing soybean ending stocks on strong demand and crop losses in Argentina and Brazil, saw beans trade up.

Values rose over 50 cents within minutes of the USDA report, punching through resistance and continuing the uptrend which started in March. That remains the case and we have the US growing season ahead.

Rapeseed ticked higher, pulled up by strength in soybeans and generally bullish sentiment in oilseeds. The old crop market has firmed in the UK as crushers and merchants look to tidy up positions, we have seen some new crop selling as prices hit £275+ ex farm.

The euro/pound exchange rate still offers a cautionary note for UK farmers. The impact of currency moves on our markets is significant and, given the Brexit vote on the horizon, it is worth bearing this in mind when making risk management decisions.