CHICAGO: Spot basis offers for soymeal extended losses in some US truck markets on Thursday, weighed down by ample supplies and relatively lackluster demand for the animal feed, dealers said.
The basis declined by $2 per ton at a processor in Decatur, Indiana. The $3 premium to Chicago Board of Trade March soymeal futures was the lowest basis for the processor since May 2012. Offers also eased by $1 in Minnesota, with the basis there also falling to the lowest in more than four years.
Animal feed mixers were utilizing cheaper competing feeds such as corn-based distillers' grains and wheat millfeeds, a dealer in Minnesota said. "The (soy) meal basis is about as cheap as it's ever been. That tells you how it's not in formulas," the dealer said of feed mixers.
Excessive rains in parts of Argentina's soy-growing areas helped lift export premiums in South America on worries of yield loss, and also underpinned US export prices for soymeal, a US export trader said. The US Department of Agriculture will release weekly grain and soy export sales data on Friday, one day delayed due to the New Year's Day holiday.
CBOT March soymeal futures eased $1.60 to $317.50 per ton as of 10:26 a.m. CST (1626 GMT).
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