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

Trump’s victory in the US election stimulated some short covering/risk off in sterling versus the euro, as traders saw increased European political risk following his victory.

USDA’s report on Wednesday raised US soybean production and ending stocks above trade estimates. The market initially sold off aggressively, but all losses were recuperated in the overnight trading session.

In Australia, the first boats destined for Europe should be loaded this month as harvest progresses. In view of the current price structure in the UK, it’s likely some of this seed will find its way into UK crushers.

Matif rapeseed futures have eased on the week in line with Canadian canola and US soybeans. In the UK, the physical market has stayed surprisingly supported, relative to the Matif, as UK merchants and crushers look to cover short positions.