Markets

US Cash Soymeal-Basis mostly unchanged on robust demand

Published Updated

* The recent decline in Chicago Board of Trade soymeal futures enticed domestic livestock and poultry producers to buy train and truckloads of the animal feed. CBOT August soymeal touched a low on Tuesday of $328.20 per ton, the lowest since the roughly five-month low on June 19.

* Comparatively larger declines in prices for soybeans boosted profit margins for soybean processors. Crush margins on the CBOT <CRUSH-1=R> of nearly $1.93 per bushel per bushel of soybeans. That is the highest nice record-large crush margins in 2014, suggesting processors could turn big profits. One cash dealer pegged profit margins on each ton of soymeal at about $50.

Copyright Reuters, 2018