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

The soybean market remains supported by strong demand in spot positions and we are seeing some dryness in Argentina, although it is too early for this to be of any worry to crops. Plantings in South America are nearing completion and conditions so far have been good.

The MATIF rapeseed contract has broken below its recent range and traded lower throughout the week.

The European physical market remains quiet with little farmer selling as we head into the Christmas period. Ex-farm prices have fallen below farmers’ target selling levels in mainland Europe. Mainland crushers remain covered into the New Year and crush margins are positive.  

In the UK the physical market is quiet, but we have seen some merchant selling for the spot positions. The new crop market is dominated by inter-merchant trade as farmers hold off selling, even though crops look excellent. The euro/pound exchange rate strengthened in the early part of the week, aiding UK prices, but came under pressure later in the week following the UK unemployment numbers.