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

The US soybean market has weakened in line with oil and meal and is now poised at a key technical levels with the potential to break significantly lower.

In Europe the physical market has strengthened relative to futures. The fundamentals point to a plentiful supply of rapeseed but, at present, buying any volume is proving difficult and this is affecting crushers. Farmers continue to hold seed as prices remain unattractive to them. The Australian harvest is now virtually complete and rapeseed arrives post-Christmas, when we could see 500-600,000t arrive. It’s difficult to make a bullish story for rapeseed but at present prices remain supported.

The UK market mirrors that of Europe with shorts dominating the market. We now see little volume coming off farm, with prices stable around £250/t plus ex farm. Seed remains in strong hands and farmers are happy to sit tight, hoping for another move higher.