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

It’s been a slow week for the oilseeds complex with little fresh news. Soybeans again tested the recent highs following last week’s USDA report, but were unable to break higher and have subsequently drifted back on light volume trade. With harvest approaching in the US the market remains split between the potential for tight US soybean supplies (depending on soybean yields) against an adequate worldwide supply of oilseeds.

In Europe the market also remains quiet with the MATIF rapeseed contract trading in a tight range. We have started to see some harvest 2014 trade in the export markets but this also remains slow. Crush margins remain profitable for pre- Christmas. UK domestic prices remain below target farmer levels at around £297/t ex farm.

Sterling has weakened slightly this week on August UK retail figures which were below analysts’ expectations.