US Cash Soymeal-Offers steady to weaker on soft demand

CHICAGO: Cash basis offers for US soymeal were steady to slightly weaker in the US Midwest on Thursday, pressured by lackluster demand despite a slide in Chicago Board of Trade soymeal futures.

Signs of weakness in truck offers for soymeal follow a softer tone in rail offers this week as railroads get caught up on shipments following weeks of weather-related delays.

Feed producers and other domestic end-users were buying only enough soymeal to meet immediate needs as they anticipate cash prices falling farther.

CBOT soymeal futures were on track to post a third straight lower daily close. As of 11:30 a.m. CDT (1630 GMT), CBOT May soymeal was down 60 cents at $303.30 per short ton after dipping to $303.00, the contract's lowest level since March 13.

Farmer soybean sales remained quiet in most locations but an Indiana merchandiser said producers were selling a few loads to generate cash ahead of spring planting.

Soy crush margins have held firm this week, encouraging processors to pay up for replacement soybeans. The CBOT May board crush was trading near $1.03 per bushel at midsession on Thursday.

The US Department of Agriculture reported export sales of US soymeal in the week ended April 11 at 298,200 tonnes (old and new marketing years combined), with the Philippines the top buyer of 142,100 tonnes.