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

US soybeans have continued to push higher with more managed money buying and trend continuation signals posted. Upward momentum is currently strong and market sentiment remains positive, with traders reluctant to sell into the bean rallies with the US growing season ahead.

The only note of caution is the market has had a huge move and a lot of the buying interest is coming from paper traders.

Rapeseed futures have also posted a new high, with market sentiment around soybeans/oilseeds being the main reason. Crush margins are not overly exciting but the futures continue to trend higher.

The euro/sterling rate is adding volatility to the market. We believe anyone offering advice on rapeseed marketing in the UK needs to have a handle of the currency market and with the referendum and the uncertainty surrounding Brexit that is very difficult.

It is worth noting gains in futures market can quickly be eroded by currency moves, which is food for thought with harvest prices at two-year highs.