Jonathan Lane, trading manager at Gleadell, says the effects of the Eurozone crisis are still being felt in the oilseed markets this week, but fundamentals remain good.

Soybeans remain very much in a downward trend with large specs and index funds reducing long positions to near zero with some starting to go short.

China has cancelled orders for up to 300,000 tonnes of refined palm oil over the past month as some traders had over-committed cargoes and domestic prices remain lower than that of imports.

Rapeseed prices have dropped over the last week with old crop prices falling around €16 and new crop falling around €10 per tonne. This price action is demonstrating a weaker old crop with the weight of cheaper Australian canola hanging over the 2011-12 market period, and a mildly friendlier tone in the 2012-13 period.

Macroeconomic events continue to spook the markets and weren’t helped this week by Germany’s undersubscribed debt auction. Oilseeds are not the only commodities trending downwards, with investor deleveraging continuing to drain money out of agricultural commodities it’s very hard to be price friendly at this time.

Fundamentals for rapeseed remain good with strong demand in Europe’s bio diesel sector through 2012-13.

Poorer planting figures throughout Europe with dry growing conditions are causing some concern for the rapeseed market going forward.