US Cash Soymeal-Offers steady to weak as supplies build

CHICAGO: Cash soymeal basis offers were steady to weaker on Friday in US Midwest rail and truck markets, pressured by ample nearby supplies of the feed ingredient, dealers said.

Moderately profitable crush margins and relatively cheap costs for replacement soybeans have encouraged processors to keep crushing.

Cash soymeal basis levels are at or near historic lows in some locations. However, Chicago Board of Trade futures are still up $25 to $30 per ton for the month, bolstered by concerns about midmonth flooding in Argentina, the world's top soymeal exporter.

As of 11:02 a.m. CST (1702 GMT), CBOT March soymeal was up 40 cents at $342.80 per short ton.