Willie Wright, Gleadell’s oilseed trader, where, contrary to other markets, weather concerns seem to be persisting.

Soybeans have trended sideways/lower over the past week, with longs unsure whether to stick with their positions or chuck the towel in at these slightly lower levels. Bulls are not confident of adding to their long position even with Argentina’s declining crop figure and the US in need of some good rains. Soybean prices have also been impacted by the weakening economic crisis and stronger dollar that continues to push commodity investors to the side lines.

European rapeseed is coming to the end of its campaign, with ex-farm selling both in the UK and Europe slowing down. There are a few producers/co-op’s who have held out for a second bite at the big ticket levels of €500/t in Europe or £400/t in the UK without success so far! Crushers look to be well covered for the remainder of this season and, if there’s a short in the market, it lies with the merchant supply trade who appear to be relaxed with supply options, including Australian canola and European new crop rapeseed production, almost in sight.

Rape oil prices remain under pressure, which is making some traders sit up as prices are at historically low levels relative to soybean oil. This, combined with poor crush margins, could be seen as a worry to the eternal oilseed bulls although meal sales are strong.

Macro-economic factors are moving back to centre stage with the spotlight on Spanish banks and Spain’s current debt yields trending towards 7%. Investors continue to move hard cash out of Eurozone banks and out of the Euro currency. This, as well as Greek elections on 17th June, will keep the markets on the defensive whilst investors continue with their 'risk off' stance.