Willie Wright, Oilseed Trader for Gleadell Grain Merchants, shares his analysis of this week’s movements in the oilseed markets

Soybeans continue their upward trend with the general market still nervous about South American weather; there has been some rain but not a sufficient amount to give more comfort. The weather forecast in the coming week is for more dry weather so, until we see a more settled pattern and more rain, the market will be supported.

Crude oil has seen a slight correction in prices but looks surprisingly well supported in what is a fragile economic market place.
Old crop rapeseed prices have lost some ground even although we’ve seen February Matif rapeseed futures climb back to €460.00 – domestic buyers are well covered for January-March, and have no real interest in buying at these levels. There is continued demand into the European market place, partially because of the excellent quality of UK rapeseed, and also because of slight delay in arrivals of Australian canola.

New crop rapeseed is proving to be more interesting with continued production/weather problems in Europe. All eyes are on Ukraine that started the growing season with very dry weather conditions; this reduced the potential crop size from 1.35mln/t in 2011 to possibly 950,000 tonnes in 2012.

Macro-economic activity continues to bubble away in the background and will no doubt throw the market off course at some stage.