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

Another USDA report and another surprise! The average trade estimates pegged the yield forecast at 47.5 bushels/acre, 0.5 bushels lower than the July report, which at the time seemed too high, given the heat that had been experienced across the western Midwest.

However, USDA decided to increase the yield by 1.4 bushels/acre, bumping up US production by 3mln t.

The CBOT soy complex reacted negatively last night to the report, falling $11 (£8.50)/t by the close.

The rapeseed futures market followed the soyabean market lower and prices fell sharply, but it remains to be seen if the longer-term outlook for rapeseed will turn bearish.

There are serious concerns about the crop condition and prospects in Canada and Australia, and delays in harvest and poor weather in Northern Europe have kept the supply pipeline restricted.

The next key pointer for medium term market direction will be the Canadian harvest and pre-harvest reports have been far from ideal.