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

The big news for the week was Monday’s USDA report, which cut projected US oilseeds production by 4.7 mln t from last month, mainly due to a lower soybean forecast. Global oilseed production for 2013/14 was projected at 493.1 mln tons, up 0.2 mln tons from last month. Reductions in US soybeans were offset by increases in other oilseeds including rapeseed and sunflower seed. The US soybean cut took the market by surprise, given the favourable US weather. This report included the first farmer-based survey. Soybean futures on the Chicago exchange rose following the report.

MATIF rapeseed futures have ticked slightly higher throughout the week. At the time of writing they are up €5 on the week, thought this translates into a very small move on UK rapeseed when the firmer £ is taken into account.

Weather remains favourable in Canada and Ag Canada released its latest balance sheet raising canola production by 1.29 mln t and ending stocks 50,000t.