Spot basis offers for US soyameal were steady on Monday, but end user demand was mixed around the Midwest, dealers said. In some areas, livestock and poultry producers bought more soyameal than they needed ahead of the US Thanksgiving holiday last week and were putting off any new purchases.
"They maybe got a little heavy (with soyameal) over the holiday," a mid-South broker said. But other end users were placing additional orders after running through much of their supply during the holiday. Many processors were shut down throughout the weekend. "I think it is a holiday-type of thing," a Minnesota dealer said. "Some of them are running out of inventory, so they want to replenish."
A good supply of soyameal on the market was keeping basis levels steady, even in areas where demand was good. Warm weather around the region prevented overall demand from rising sharply, even in areas where end users needed additional meal. Animals tend to eat more during periods of cold weather. At 11:55 am CDT (1755 GMT), the Chicago Board of Trade December soyameal futures contract was up $2 at $196.80 per ton.