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

US soybeans remain in short supply, but there is a backdrop of a large South American crop. In Brazil the weather remains good and harvest has started in the early areas. Needed rains are falling in Argentina. Although farmers continue to hold soybeans as a hedge against inflation, soybeans have traded lower throughout the week.

In Canada logistical problems continue to restrict export and domestic crush.

In Europe the physical rapeseed market remains fairly quiet and the recent uptick in the MATIF futures resulted in decent volumes of seed being offered to market, but activity is slow. Crushers have booked good cover and there is a plentiful supply of seed, with Australian exports arriving imminently. Physical prices have weakened in Europe and the new crop market remains very quiet with farmers reluctant to sell.

In the UK we have seen some farmer selling but not in huge volumes. Farmers continue to hold seed but UK prices have weakened. This week better-than-expected UK employment numbers boosted sterling, which has had a further negative effect on domestic prices.