US Cash Soymeal-Offers hold on futures plunge spurs demand

CHICAGO: Soymeal spot basis offers held mostly steady at US rail, truck and export markets on Thursday as futures hit a seven-month low and headed for their longest streak of declines since harvest, spurring a modest bounce in demand for the animal feed, dealers said.

* Offers fell $5 per ton in Claypool, Indiana, with dealers seeking to entice even more demand, while the basis was largely unchanged elsewhere. Some dealers rolled offers to CBOT March meal from January, leaving the basis unchanged compared to the roughly $1 per ton spread between the contracts.

* CBOT soymeal futures fell to the lowest point since early June and were on pace for the sixth straight session of losses, a streak not seen since the early days of harvest in September.

* But some buyers remained on the sidelines, hoping for further declines before booking loads of the feed.

* The latest in a string of recent soy cancellations for top global importer China sent the CBOT soy complex tumbling.

* CME Group posted nine deliveries against CBOT January soymeal, bringing the total for this period to 27.

Center>Copyright Reuters, 2013