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

The USDA has increased its estimate of last year’s soybean production and ending stocks, slightly above analysts’ estimates. The good to excellent rating was also raised for this year’s crop, with some early indications of better than expected yields - although we are still in the early part of harvest.

The EU Commission has submitted its final proposal on anti-dumping duties against imports of bio-diesel from Argentina and Indonesia, which account for 90% of EU imports. As a result, MATIF futures rallied €11/t as traders covered short positions, with a view that the duties could increase EU demand for European seed. At present this is just a proposal and isn’t yet law; it will be interesting to see if the market continues to react to this news.

StatsCan is due to release its Canadian canola crop figure on Friday; the market expects a large crop in excess of 16mln t.