CHICAGO: Soymeal spot basis offers held steady in the United States on Thursday as soybean crushing margins and demand for soymeal both were lackluster, dealers said.
Buying from livestock and poultry producers remained mostly hand-to-mouth, with end users eying a potentially record-large US soybean harvest, and possibly lower soymeal prices, in the coming weeks.
Soymeal prices still were trading near the lowest levels in years and some buyers were taking advantage.
The US Department of Agriculture said Mexico bought 100,460 tonnes of US soymeal, 72,122 tonnes for delivery in the marketing year beginning on Oct. 1 and 28,338 tonnes for shipment in the season beginning on Oct. 1, 2017.
One soymeal trader that by buying soymeal for 2017 now, Mexico could likely lock in profitable margins for future hog production.
USDA separately released weekly US soymeal export sales that fell at the low end of analyst expectations.
Crushing margins measuring profitably in US soybean processing were trending sideways, giving the processors little incentive to aggressively bid for soybeans as supplies tighten before the harvest.
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