It’s been another incredible week in the oilseeds complex,” says Jonathan Lane, Gleadell Agriculture’s trading manager. “Prices continue to climb as one piece of bullish news after another, combined with the increasing influences of non-agricultural investors, pushes prices higher.

“Changes to economic policy in China that were expected to reduce the appetite for further soybean purchases are now being completely discounted as China continues to buy in an almost relentless fashion. This demand is underpinning the oilseeds market. But there is now an added worry that increasingly dry weather conditions in South America are eating in to the yield potential of their soybean crops on a daily basis - and the world desperately needs Brazil and Argentina to have a good harvest.

“Strong demand and added weather premiums are driving the soy market back towards contract highs, and fresh ‘start of the month’ fund money has also helped things along.

“The strength in the soy complex has spilled over in to the European rapeseed complex and the falling Euro has also helped to take the Matif rapeseed futures to contract highs. There is now a real concern about where the European crushers are going to get their supplies of seed from in the second half of the campaign - Gleadell are now actively exporting to the continent. [SEE ATTACHED PICTURES: "MV Hav Snapper loads at the Port of Grimsby with 2,900mt of oilseed rape bound for northern France."]

“Crush margins are still good and we continue to see strong export demand from the continent, but the current rate of use simply can’t be maintained! We need rapeseed prices to go higher in order to ration demand. Currency aside, we don’t think this rally is over yet!” Mr Lane adds.