CHICAGO: Spot basis offers for US soymeal dropped at truck market locations west of the Mississippi River on Thursday as an influx of newly harvested beans allowed processors to boost their run times, dealers said.
Offers in the east held steady but were expected to fall when fields dry out enough to allow farmers in those areas to harvest what is expected to be a record crop.
Offers fell by $12 per ton in Cedar Rapids, Iowa, and Iowa Falls, Iowa, on Thursday after dropping by $14 and $15 per ton in those locations on Wednesday.
Demand was hand-to-mouth, a Minnesota broker said. End users were only buying enough to meet their immediate feeding needs as they expected further erosion in the basis in the coming weeks.
Offers held steady in the rail market, where supplies were still tight as not enough fresh soymeal has been produced to fill enough trains to satisfy demand.
Export demand was weak, which weighed on both the CIF and FOB basis, a trader said.
There was talk of Argentine buyers booking a small shipment of US soymeal for October delivery and another for November but there was no confirmation of a deal, the trader added.
At 9:16 a.m. CDT (1416 GMT), Chicago Board of Trade October soymeal futures were up 90 cents at $300.60 a ton.
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