US Cash Soymeal Offers flat, demand dull

CHICAGO: Spot basis offers for soymeal held steady at US rail, truck and export markets on Monday as slow demand for soymeal offset seasonally tight supplies of the animal feed, dealers said.

Demand remained lackluster as hog, livestock and poultry producers sought cheaper alternative feeds, such as distillers' dried grains or meal made from canola or cotton seeds.

Few old-crop soybeans still available to buy from farmers while some processors are also taking annual downtime for maintenance, limiting soymeal supplies.

Dealers are rolling offers to CBOT September soymeal from August and largely leaving the basis flat, in effect firming offers by the roughly $1 per ton spread between the two contracts.

Soybean basis bids mostly steady at Midwest processors, with the yields of the developing soy crop still undetermined as some soybean plants start to pollinate.

Analysts expect USDA to slash soybean condition ratings late on Monday in what would be the third straight week of declines as hot weather robs the crop of some yield potential.

CBOT soy complex firm amid the lower expected condition ratings and on support from an announcement of a US debt deal to be voted on as early as Monday night.

Three deliveries posted against CBOT August meal.

CBOT September soymeal was up 60 cents at $353.80 a ton, as of 12:20 p.m. CDT (1720 GMT).

The CBOT September board crush down 2-1/4 cents at 40 cents per bushel.

Copyright Reuters, 2011