CHICAGO: Soymeal spot basis offers were steady to narrowly mixed at US rail and export markets on Tuesday as recent declines in futures enticed buyers of the animal feed, underpinning prices in some markets, dealers said.
Livestock and poultry producers locked in prices after Chicago Board of Trade May soymeal futures fell to a roughly two-month low last week, before prices recovered some of their losses. The contract was down 90 cents to $330.00 per ton at 11:10 a.m. CDT (1610 GMT), up from last week's low of $325.70.
Some dealers hiked basis offers slightly to account for recent buying and to offset the losses in futures. However, abundant animal feed supplies, coupled with cheaper export offerings out of Argentina, continued to weigh on offers elsewhere.
Soymeal basis offers had a weak tone in the eastern US Midwest rail market, where soy crushers continued to run at ramped-up rates, while offers firmed in the Minnesota truck market due in part to a slower crush pace, the dealers said.
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