European feeds-Soymeal firm on weak dollar, rapemeal mixed

PARIS: Soymeal prices on Europe's animal feed market rose for a second session on Tuesday as further dollar weakness and Monday's strong close in Chicago outweighed an easing in US futures.

Activity in Europe was light, with no significant trading confirmed in soymeal or other meals products, as the firm price trend deterred some buyers expecting ample global supplies to pressure the market.

South American soymeal was marked up between $2 and $5 a tonne higher compared with Monday. For spot delivery CIF Rotterdam, Brazilian high-protein soymeal was offered at $383 a tonne, up $5, while Argentine high-protein supplies were up $4 at $363 a tonne.

EU-produced soymeal was also higher, with offers up $3 to $4 versus the previous session.

Chicago soybeans and soymeal eased on Tuesday, pressured by quicker than expected progress in US planting, but held on to most of their gains from Monday.

The dollar, meanwhile, lost more ground against a range of currencies, including the euro. A weaker US currency makes dollar-denominated commodities cheaper overseas.

Prices for euro-quoted rapeseed meal were mixed, as the euro's rally curbed support from soy markets.

The euro rose to near Monday's five-month high against the dollar, buoyed again by investor relief that Emmanuel Macron, seen as a market-friendly candidate, emerged in pole position from the first round of France's presidential election.

Rapemeal was offered between 4 euros lower and 1 euro higher.

Traders were continuing to monitor weather conditions for rapeseed in Europe after frosts in the past week raised the risk of damage to flowering crops.

The European Union's crop monitoring service on Monday lowered slightly its forecast for the average rapeseed yield in this year's harvest as it pointed to the possible impact of the cold spell.

However, oilseed markets remained capped by the prospect of bumper South American soybean harvests and record Canadian sowings of canola.