US Cash Soymeal Offers hold steady, weak demand

CHICAGO: Spot basis offers were flat at rail and truck markets around the United States on Wednesday as demand for the feed waned, dealers said.

Rail service has resumed to a processor near St. Joseph, Missouri after flooding from the Missouri River earlier this summer left the tracks underwater for some time.

A processor in central Indiana was closed on Wednesday for planned maintenance, but will reopen on Thursday, a dealer at the location said.

Nearby domestic demand for soyoil was slightly stronger due to delayed delivery times, a broker said. Some plants have not resumed the same crushing pace after taking down time which slowed deliveries causing end-users to double book soyoil orders, the broker said.

Livestock producers largely wait for lower soymeal prices before book large amounts or deferred months, dealers said.

Some competing feeds, including DDGs and soy hulls, are cheaper and have mixed into feed formulations, dealers said.

A soymeal offers at a processor in Iowa rose by 5 cents per bushel.

CBOT September soymeal was up $1.40 at $340.80 a ton, as of 12:03 p.m. CDT (1703 GMT).

The CBOT September board crush was up 2-1/2 cents at 40-1/4 cents per bushel.

Copyright Reuters, 2011