CHICAGO: Soymeal spot basis offers were steady to higher at truck markets in Iowa but steady to lower at most other US markets on Wednesday amid dull demand and as futures prices jumped more than 2 percent, dealers said.
* Iowa basis offers climbed as supplies of spot soymeal were tight, rising by $2 per ton at processors in Cedar Rapids, Iowa Falls and Sioux City.
* Supplies of soymeal were tight in some areas as several soy processing plants were taking or preparing to take seasonal downtime for maintenance.
* Near-record-high prices limited demand for soymeal. The inverted market structure, with short-dated futures at a premium to deferred contracts, discouraged buyers from making big spot purchases.
* Many livestock producers and feed mixers also continue to seek cheaper alternatives, such as dried distillers' grains, canola meal, cottonseed meal or corn gluten.
* Soy futures on the Chicago Board of Trade rallied on Wednesday after recent declines on worries about tightening supplies due to the US drought.
* CBOT September soymeal was up $11.60 at $518.20 per ton as of 12:07 p.m. CDT (1707 GMT).
* CBOT September board soy crush fell 2-1/4 cents to 69-1/2 cents per bushel.
Comments
Comments are closed.