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

The Chicago soybean futures market has traded up to the $13.40 – $13.50/t range which is a three-month high. Soybeans historically rally post-harvest and there has been strong export and crush demand. With South American weather currently favourable, the large forecasted crop there is likely to weigh on prices longer term if we have no weather problems. The market is anticipating next week’s WASDE report to increase South American production forecasts.

Yesterday StatsCan reported the canola crop at a record high 17.960 mln t.  This was towards the high end of analyst expectations.

The MATIF rapeseed contract has been unable to rally this week and European physical market also remains flat. In the UK, merchant short covering continues to dominate the market with little coming forward from farm. We have seen some new-crop UK cargoes traded for export.