Willie Wright, Oilseed Trader with Gleadell grains, recounts the latest developments that are affecting the global oilseed markets.  

The final USDA report for 2011 proved to be bearish for oilseeds - global oilseed production for 2011/12 is projected at 457.6mnl/t, up 2.8mnl/t from last month. 

Global soybean production is projected at 259.2mnl/t, up 0.3mln from last month, and global oilseed ending stocks are projected at 75.5mnl/t, up 1.6mln from last month. 

Rapeseed had recovered €20 over the last 10 days and then had the wind taken from its sails after the USDA report. This coincided with the Prime Minister’s decision to veto the European Union proposals and leave the table - currency markets reacted quickly and we saw sterling rally to 1.1930 against the Euro. 

New crop rapeseed is entering a more interesting period with lower plantings in Europe, strong demand and winter weather market to get through. 

We are currently seeing Eurozone debt fatigue as meeting after meeting provides nothing more than posturing rather than substance. We hear continued rumours of a large European bank default looming. With all this uncertainty in the markets, we will continue to see deleveraging of commodities for some time to come.