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

This week USDA released its September report and the soybean yield was cut to 41.2 bu/acre which reduced US production by around 3mln mt. This was in line with market expectations and was supportive for beans. The market is currently focused on US soybeans as the next big crop but it’s worth noting that USDA raised global oilseeds production by 2mln mt with Brazil bean production projected to increase by 3mlm mt.  

In Europe the physical market remains quiet with a lack of farmer selling. The crushers remain covered with Black Sea seed and we are now also seeing Australian seed offered into the EU. The UK physical market is also slow with little coming forward from farm, the inter-merchant trade is dominated by short covering and currently UK seed doesn’t calculate into export markets with the delivered homes offering better value for sellers.

Sterling remains firm against the euro with positive economic data being released in the UK. This is decreasing domestic prices.