CHICAGO: Spot basis offers for soymeal were steady to weak at truck market locations on Wednesday as recent gains in futures prices have chilled demand by livestock and poultry producers, dealers said.
* Offers in the rail market were steady but new customer bookings were light.
* A trader said that concerns that low water on the Mississippi River would restrict the flow of barge traffic to the US Gulf was having little impact so far on basis levels in the export market.
* The effects of the low water likely would not show up in the market until the end of the first week of December, a trader said.
* A tight supply of soybeans at crushing plants kept domestic offers from falling too far even with scant new interest from livestock and poultry producers, dealers said.
* Soymeal futures on the Chicago Board of Trade rose for the fourth day in a row on Wednesday. The front-month contract has gained 2.3 percent during the rally.
* Basis offers declined by as much as $3 per ton at processing plants in Iowa. Offers also were weaker in the Kansas City area.
* Analysts were expecting a US Agriculture Department report on Thursday morning to show weekly export sales of soymeal between 150,000 and 250,000 tonnes. A week ago, soymeal export sales were 197,900 tonnes.
* CBOT December soymeal was up $1.60 at $440.90 per ton as of 11:44 a.m. CST (1744 GMT).
* The CBOT January crush was up 2 cents at 60-3/4 cents per bushel.
Copyright Reuters, 2012
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