Jonathan Lane, trading manager, offers analysis on the week’s events in the oilseed markets.

Soybeans have been trading at the higher end of their range and jumped earlier in the week on rumours of China’s Sinograin buying 500,000 to 600,000 tonnes of US soybeans for state reserves.

Most market traders expect China to increase its imports this season from last season’s imports of 52.34mln/t but the range could extend from 56–61mln/t.

Old crop Rapeseed prices have performed well, trading between £355-£360 ex farm, depending on location. New crop ex farm rapeseed prices are trading between £325-£330.

UK rapeseed prices have been trending higher, with much of the strength coming through in the new crop market prices. Currency has provided some direction but traders would appear to be watching the developments in Ukraine with their extended dry spell of weather.

Rapeseed crops look well, although some commentators are concerned about the crop's advanced state.

The Australians are heading for a record canola crop of 2.6mln/t and, with their prices trading at a £50 discount to European rapeseed price, ex south west ports will have to remain competitive in order to export our surplus in the New Year.

External macroeconomic factors will continue to influence our commodity markets for the time being, although over the last week events in Europe have slipped into the background allowing our commodity markets to come up for some air. Unfortunately, this will be short-lived, with the money markets still showing the rising cost of interest payable at weekly European debt auctions. So it won’t be long before events come back to shake the tree once again.