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

US soybean futures have ticked higher over the week on dryness concerns, with excessive heat appearing in the longer range forecasts.

With a tight balance sheet following crop losses in South America, a big US harvest is needed. Any yield loss will cause a further tightness in supply.

MATIF rapeseed futures have been pulled higher in support of soybeans and canola. The European harvest is yet to get underway and weather concerns (as yet unrealised) in the US are affecting market sentiment.

The UK physical market has also rallied in response to MATIF, helped by recent stability in the Euro/pound exchange rate.