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

Soybeans continue to see tight supply and demand for US old crop. The trade has been looking for cancellations of Chinese cargoes from the US, which will be switched to South America. On Wednesday it was announced that 270,000t had been cancelled, though this volume was too light to significantly affect the market. The harvest continues in Brazil and currently there are no major weather issues. In Argentina, farmers continue to hold soybeans.

Canadian canola has broken lower and continued its downtrend, making new contract lows. Canada had a record canola crop and is currently suffering logistic problems restricting exports and internal crush capacity.

MATIF rapeseed has, at the time of writing (Thursday 13 Feb)  been unable to break above last week’s highs, instead trading a tight range of around €6. The recent rise in the MATIF has brought good volumes of physical seed to the market across Europe and crush margins have deteriorated accordingly. 

Sterling firmed against the euro following comments from the governor of the Bank of England on Wednesday. This decreased UK domestic prices by about £3/t. Since the new year we have seen good levels of farmer selling in the UK.