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

The soybean market has remained supported in the nearby positions by strong export and crush demand and strong technicals. Chinese demand for soybeans remains very strong.

The Brazilian government this week released its soybean production figure for new crop at a record 90mln tonnes. Weather in South America is currently favourable and plantings are nearing completion in Brazil. The South American harvest starts in February.

In Europe the physical market remains slow with a lack of farmer selling. Merchants are emptying stores and the crush is covered well into the New Year. Towards the back end of the week the MATIF futures contract broke below its trading range and this encouraged more merchant selling. Ex-farm UK prices are now well below £300/t for spot positions.