CHICAGO: Spot basis offers for soymeal were steady to lower in US rail, truck and export markets on Tuesday as crushing supplies expanded amid the accelerating soybean harvest and demand remained lackluster, dealers said.
Some domestic and international buyers were delaying purchases on ideas that prices will extend losses on better-than-expected soybean yields and US Department of Agriculture outlooks for a record-large US soybean crop.
Chicago Board of Trade soymeal futures were trading at the lowest levels since April and were below the psychological threshold of $300 per ton, with the front-month October contract easing $2.70 to $294.90 per ton as of 10:20 a.m. CDT (1520 GMT).
However, some buyers were waiting for discounts in the basis before locking in forward contracts. Basis offers eased by $1 to $9 per ton but the offers could decline further as more farmers harvest their soybean fields. "Demand for meal to the river is almost nonexistent," a soymeal barge trader said.
USDA late on Monday said the US soybean harvest was 10 percent complete, relatively in line with analyst expectations of 11 percent harvested.
Comments
Comments are closed for this article.