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

US markets remain volatile. Meal has surged to new highs and beans are testing the upper boundaries of the recent range, just below $11 a bushel. We continue to see managed money buying in the oilseeds space, as well as conflicting fundamental arguments surrounding crush margins and crop damage. One thing is clear, the trend at present remains upwards.

EU rapeseed August futures were able to push to their highest level this year, thanks to positive sentiment from soybeans. Interestingly, crushers remain fairly relaxed with margins not particularly attractive.

UK prices have eased back on the week despite the rising MATIF. This is due to the strength of sterling against the euro. The longer term exchange rate bear market could well be resuming, with the three-month rise (Dec-Mar) being a counter trend move. Currency has huge implications for UK farmers and it needs to be considered in marketing plans.