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

Soybeans rallied throughout the early part of the week on strong crush and export demand and technicals turning positive. The latter part of the week was slow with profit taking ahead of the Thanksgiving holidays.  

In South America plantings continue with few problems reported at present. There are some delays on corn plantings in some areas which could lead to more acreage being switched to beans.

The European market remains slow with good crush margins, crushers having booked cover well into the New Year. We have also seen good volumes of Australian seed trade fixed for arrival early next year. With regard to new crop in Europe we believe farmers have only sold 5-10% and less in the UK.

In the UK liquidity remains a problem for merchants with farmers reluctant to sell below £300/t ex farm. This level has been seen in some areas close to crushers this week but with the crush covered and UK seed expensive compared to European supplies the market has been unable to break this level.