Jonathan Lane, Gleadell’s trading director, comments on the OSR market

The MATIF futures market has continued to make gains this week aided by euro/dollar weakness and a lack of physical sellers in Europe.

The UK market has seen decent volumes come forward from farm as target levels around £260/t ex farm were hit. However, the UK market remains overpriced compared with Europe.

Early in the week we saw crusher demand for spot positions and they were able to buy good volumes. We feel farmers should consider locking out old crop around these levels as ex-farm prices have gained about £50/t since the harvest lows. The majority of the move may well be over.

New crop remains quiet in the UK with a lack of sellers in the trade or on farm and crushers currently reluctant to buy.