Oilseed Rapereport

"The soybean market is higher on the week following some profit-taking after the aggressive selling that we have witnessed in recent weeks. The weak dollar also helped to lift prices," said Jonathan Lane, Gleadell oilseed rape trader.

"However, despite this rally fundamentally nothing has really changed. World oilseed stocks are getting bigger not smaller, and the outlook for growth in demand is not good given the current economic outlook. Many pundits are talking the crude oil price back to US$35/barrel and if this is the case the oilseed market looks likely to remain under pressure for the foreseeable future.

"The European market fell EUR37.5 last week, so it was no real surprise to see some of these shorts booking profit and whilst this may continue in the short term, the longer term outlook is still clearly bearish. European crushers reported the purchase of another cargo of Australian seed at the end of last week for April arrival and this, combined with the imported Black Sea seed and the very real threat of Canadian canola being allowed into Europe, the supply side of the balance sheet still looks very top heavy.

"In short, given the information that we currently have, any lift in prices should be viewed as selling opportunities," Mr Lane added.