Spot basis offers for soyameal were mostly steady around the US Midwest on Thursday, but the market had a weak tone due to abundant supplies, dealers said. Soyabean processors have received a good amount of soybeans in the past few weeks as farmers have finished up harvest in many parts of the region.
"They (processors) are just crushing really hard right now," a broker in the Kansas City market said. Soyabean harvest was delayed this year by rainy weather that muddied fields and prevented farmers from running their combines.
But soyameal prices have eased as the harvest finally nears completion. Producers have sold soybeans that they cannot store on their farms to the processors.
Soyameal prices could firm up in the next few weeks as temperatures cool and demand rises, a mid-South broker said. Animals tend to eat more during the winter months.
Most farmers were unlikely to sell soybeans they have in storage before January, which also could cause soyameal prices to rise during December.
The US Agriculture Department said on Thursday morning that export sales of soyameal were 134,200 tonnes (old and new crop) in the latest reporting week, in line with market predictions for 125,000 tonnes to 175,000 tonnes.
Export sales of soyaoil were 18,000 tonnes, above trade estimates for 2,000 tonnes to 7,000 tonnes, USDA said. Soyabean export sales rose 7 percent to 755,700 tonnes in the latest reporting week, beating market forecasts for 550,000 to 750,000 tonnes. In other export news, a consortium of Israeli buyers purchased about 7,000 tonnes of US soyameal, along with larger shipments of corn and sorghum, traders said.
At 11:47 am CDT (1747 GMT), the Chicago Board of Trade December soyameal futures contract was off $1 at $191.50 per ton. January soyabean futures fell 1/2 cent to $6.63-1/4 per bushel. The December soyaoil contract was off 0.02 cent at 28.37 cents per pound.