US Cash Soymeal-Rail offers soften; end-user demand subdued

CHICAGO: Cash basis offers for US soymeal were steady to weaker in the US Midwest on Wednesday, pressured in part by a pickup in railcar availability, merchandisers said.

Railroad service has improved and rail freight costs have fallen this month following weeks of weather-related delays, one ingredient broker said.

Demand from domestic end-users has slowed as they anticipate further discounts, the broker added.

As of 12:51 p.m. CDT (1751 GMT), CBOT May soymeal was down $1.90 at $304.60 per short ton after dipping to $303.80, the contract's lowest level since March 27.

Farmer soybean sales were thin as CBOT soybean futures fell to a 5-1/2-month low.

But soy crush margins remained relatively strong, encouraging processors to pay up for replacement soybeans. The CBOT May board crush was trading at close to $1.03 per bushel at midsession on Wednesday.

Ahead of Thursday's weekly US export sales report, traders expected the government to report soymeal sales for the week ended April 11 at 125,000 to 325,000 tonnes.