Markets

US Cash Soymeal-Offers higher on slow bean sales

Published Updated

* Farmers are putting harvested supplies in storage bins and waiting for futures to rise before delivering any soybeans beyond the beans they sold earlier this year.

* Cash prices in soybeans in most of the country are below the $13 per bushel price target of many growers.

* The slow farmer sales have limited crushing supplies at processors at a time of year when soy stocks typically are most plentiful.

* Persistent talk that soybeans are dryer than normal this year, and are yielding less protein and oil when crushed, are also supportive to soymeal basis offers, traders said.

* Offers climbed $5 per ton in Lafayette, Indiana, while offers were $1-$2 higher for truck pickup in the western Midwest and in the CIF and FOB export markets.

* Rains likely to delay harvest this week in the eastern Midwest. USDA late Monday said soybeans 69 percent harvested -- behind last year's pace but ahead of the five-year average pace.

* No deliveries posted Tuesday against expired CBOT October soymeal, the CME Group said.

* CBOT soy complex lower on harvest pressure and slowdown in economic growth in China, the top global soybean buyer.

* CBOT December soymeal was down $1.60 at $321.40 per ton as of 11:25 a.m. CDT (1625 GMT).

* The CBOT December board crush up 1-3/4 cents at 41-3/4 cents per bushel.

Copyright Reuters, 2011