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

The soybean market remains volatile with any changes in US weather moving the market. This week the Nov13 contract again tested recent highs but was unable to break through technical resistance levels and moved lower towards the end of the week. In the physical market we continue to see Chinese bean purchases from Argentina and Brazil.

Sterling has continued to rally against the Euro and is having a negative effect on UK domestic prices. The pound’s strength is due to better-than-expected economic results, particularly in the UK service sector.

In the UK the market remains focused on executing logistical plans. The delayed harvest and lack of export activity are creating problems for merchants and farmers. Crush margins remain profitable for pre-Christmas positions. We have seen some farmer selling into the rally but not in large volumes.

In summary the market remains focused on US weather and the next USDA report. Rapeseed supply and demand is unchanged, we have a large crop in Europe and we are expecting a large crop in Canada. Short-term direction will likely come from US weather reports and volatility should remain high with the uncertainty surrounding the bean crop.