Jonathan Lane, Gleadell’s Trading Manager, comments on the OSR market
= With the South American harvest nearing completion the focus is now turning to US plantings and Friday’s USDA report, where US ending stocks and production figures will be of principal interest.
È Canadian statistics agency Statscan estimates canola ending stocks at a record high of 9.02mln t.
È In Europe farmer selling remains limited but, with crops looking good across the Continent, the market is anticipating a wave of harvest selling with farmers needing to move seed quickly.
|Canola cultivation, Binalong, NSW. (Photo credit: jemasmith)|
Crush margins are profitable for harvest but are poor against historical levels for that period. With no weather problems in sight, ex-farm physical prices are weakening in relation to t
he futures markets as we get closer to harvest. The MATIF futures market has weakened roughly €20/t in the past two weeks due to a lack of bullish input.
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