European feeds up on South American weather

ROTTERDAM: Soymeal on the European meals and feeds market jumped on Wednesday following a rally in Chicago on the back of worries that dry weather in South America could cut soybean production, market sources said.

"The European cash market gained substantially but business remained thin because of lack of participation, with many players already wound down for the end of the year, and continued slack demand due to poor margins for end-users," one broker said.

South American soymeal was offered between $4 and $8 a tonne up from Tuesday following last night's strong CBOT soymeal futures. Bids were scarce and no deals were reported.

Most other products were quoted flat to a bit firmer following the trend in soymeal and firmer rapeseed futures, while a stronger dollar also supported euro-priced products.

Feb/April EU rapemeal changed hands at 168 euros per tonne fob lower Rhine and Malaysian palm expellers fetched 117 euros per tonne fob Rotterdam for afloat material.

Copyright Reuters, 2011