Soymeal prices on Europe's animal feed market were mixed on Thursday as benchmark Chicago prices shifted direction. No major trading was reported. There was unconfirmed market talk of trade in rapeseed meal but no prices were available. "Prices in Europe continue to closely follow the trend in Chicago and the trend was up and down today," one European trader said.
"Some rapeseed crop forecasts in Europe are being scaled back but otherwise the oilmeal supply outlook remains positive with some buyers remaining hopeful of lower prices because of plentiful supplies," the trader said. US soybean futures rose sharply on Wednesday to their highest since May 14, pulling up soymeal, as forecasts of heavy rain in the US Midwest threatened to disrupt soybean sowings.
But Chicago soybeans were weaker in the European trading session on Thursday, taking upward pressure out of the overnight Chicago trend. In Europe, Argentine high protein soymeal was offered for sale for July delivery up $2 a tonne from Wednesday at $395 a tonne cif Rotterdam. But Brazilian high protein soymeal for July delivery was offered for sale down $1 a tonne at $408 a tonne cif Rotterdam and EU produced high protein soymeal for July delivery fell $1 to $404 a tonne fob Rotterdam.
Another trader said: "If weather remains broadly favourable for the US soybean crop in coming weeks and there are no supply disruptions to the large soymeal production currently being shipped out of South America, some buyers are expecting falling soymeal prices in coming weeks and are holding back purchases." "The main crop worry appears to be rapeseed in parts of the EU." The 2015 winter rapeseed crop in Germany, in most years the EU's largest rapeseed producer, will fall 20 percent from a year earlier to 4.99 million tonnes, Germany's association of farm co-operatives said on Wednesday. This was down from 5.23 million tonnes forecast by the association in May, after dry weather parched crops in recent weeks.
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