US Cash Soymeal-Offers ease after farmers sell soybeans

CHICAGO: Cash basis offers for soymeal were steady to weaker in the US Midwest interior on Thursday following a pick-up in farmer sales of soybeans in the last day, dealers said.

* Farmers sold old-crop as well as new-crop soybeans after CBOT front-month futures hit a six-week high and spot cash prices reached $15 in some areas. Producers were offering new-crop soybeans at around $13.

* As a result of the flush of soybean offerings from the country, some crushers lowered their basis bids for soybeans by up to 10 cents a bushel.

* However, the soyoil basis firmed by 0.25 cent as declining cash crush margins resulted in reduced soyoil output, one broker said.

* Export premiums for soymeal at the US Gulf were steady to $1 lower. Global buyers were delaying large purchases in anticipation of a large soybean harvest in South America.

* At the Chicago Board of Trade, soybean and soymeal futures fell on profit-taking after a four-day rally, and on improved crop weather in South America. Dry weather in Argentina remains a concern but weather models raised the potential for slightly wetter weather next week.

* As of 12:20 p.m. CST (1820 GMT), CBOT March soymeal was down $5.50 at $427.20 per ton and March soybeans were down 13 cents at $14.65-3/4 a bushel.

* The CBOT March soybean crush was unchanged at 51-3/4 cents per bushel.

* USDA reported export sales of US soymeal in the latest week at 141,700 tonnes, below a range of trade estimates for 150,000 to 200,000 tonnes.

* USDA put weekly soybean export sales at 1.253 million tonnes (386,000 for 2012/13 and 867,000 for 2013/14), topping trade estimates for combined-year sales of 650,000 to 850,000 tonnes.

* USDA also said private exporters reported sales of 220,000 tonnes of US soybeans to China for 2013/14 delivery, raising the total for the week to 615,000 tonnes.