Gleadell oilseed trader Willie Wright offers the latest analysis of the global oilseed market, where prices remain in the sway of crude oil, though farmers are benefitting from strong prices for rapeseed.

Crude oil – after what has been a sustained rise in crude prices we’re starting to see some retracement, the market view is very mixed over crude oil currently, with some commentators arguing that investor money and political fears are holding prices at these levels, not true market demand! Technically crude looks firm but the market place wouldn’t be surprised if we saw a larger pull back.

Weather issues in South America and the continued reduction of soybean production is allowing soybeans to cling to $13.50 level in May CBOT. The market needs sustained Chinese buying and continued weather problems to support. Soybeans have seen a healthy correction over recent days and we would expect the market to trade sideways until the next USDA report.

Canola, along with the general oilseeds market, has seen a sustained rally from early December – having now breached the $600 level we are starting to see some profit taking.

Old crop rapeseed has rallied €85 per tonne from early December and May matif traded at €483 per tonne towards the end of last week. We have seen excellent first hand selling at these levels and would expect old crop rapeseed sales to slow up considerably until farmers move all their old crop commitments and establish what is left to trade.

New Crop rapeseed prices have rallied in line with old, and farmers are taking the opportunity to book good prices for the coming season. European demand for rapeseed continues to be strong with the UK well placed to satisfy this demand.

Nearby crush margins are appalling and we would expect to see some easing of demand or re sales of rapeseed by crushers as a result.