US cash soymeal offers steady to firm; demand rises
Spot basis offers for U.S. soymeal were steady to firm at processors around the Midwest on Wednesday, with dealers reporting good demand from livestock and poultry producers.
• Cash prices have fallen during the past month due to a $50-per-ton drop in the futures market, which has allowed end users to ramp up purchases. But soymeal supplies were tight as country movement of soybeans remained slow even as harvest yields topped expectations.
• Offers rose by as much as $5 per ton at a processor in Lafayette, Ind.
• A dealer there said he was trying to get farmers to deliver newly harvested crops instead of placing them in storage bins.
• Soymeal futures eased at the Chicago Board of Trade on Wednesday as investors continued to unwind meal/oil spreads. bushel more above current levels, the dealers sad.
• Farmers were light sellers of corn in northern Ohio amid expectations prices could decline as the harvest accelerates, a dealer there said.
• Strong competition for freshly harvested soybeans among processors and river terminals underpinned the soy basis — bids gained 1 cent per bushel at a terminal along the Mississippi River in Davenport, Iowa.
• An elevator near Chicago increased its soybean basis by 5 cents while an elevator in northern Indiana decreased its basis by that amount.
• Corn bids were firm at rail terminals in the eastern Midwest amid a slow harvest pace in recent weeks. But bids for the grain eased along the Illinois River.
• Barge freight costs are at the highest levels of the year along Midwest waterways amid growing demand for vessels to ship harvested supplies. The higher shipping costs limited what grain traders were willing to pay for the commodities destined for the CIF export barge market.