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

We continue to see large volumes of seed being offered out of the Black Sea and Eastern European regions. The harvest in France is around 15-20% complete and in Germany 20-30% complete. The tonnage offered for sale continues to pressure the MATIF futures and cap any potential rallies. European seed is also trading into international destinations.

UK ex-farm prices are around £280/t, down around 25% on the year. This reduction reflects the current supply and demand fundamentals, with large crops in Europe and currently no weather problems of note in the US where the soybean crop is heading into the crucial month of August.

We have seen the euro rally against sterling this week, which has aided UK ex farm prices. All eyes will be on the Bank of England minutes.