January 27, 2011

European soymeal demand increases on price drop

European meals and feeds market demand for soymeal increased on Wednesday (Jan 26) as buyers benefitted from a weak dollar and a drop in prices, according to market sources.

"Cash prices dropped following Tuesday's (Jan 25) tumble in soy complex futures on beneficial rains in Argentine soy growing areas. The lower levels, the weak dollar and expectations that Chicago would recover caused some demand," one broker said.

South American soymeal was offered between US$2 and US$5 per tonne down from Tuesday (Jan 25) following last night's CBOT soymeal futures close. Afloat, Brazilian soymeal pellets traded at US$460 and US$454 a tonne fob Rotterdam and April/September traded at US$437 a tonne cif Rotterdam.

Afloat, Argentine high protein soymeal changed hands at US$464 a tonne cif Rotterdam, January shipment fetched US$462 a tonne and May/September traded at US$446.50 cif.

Most other products were offered flat to slightly lower from Tuesday (Jan 25) following soymeal and because of a weaker dollar.

EU rapeseed meal in February/April traded at EUR226 (US$309.78) per tonne freight-on-board (fob) lower Rhine, August/October traded EUR2 (US$2.74), up from EUR187-189 (US$256.25-US$258.94), November/January fetched EUR191-193 (US$261.61-US$264.34) and Nov/April traded unchanged at EUR194-195 (US$265.79-US$267.17) fob.