Bunge cancels soymeal CBOT registrations

Commercial soy processor Bunge North America cancelled 282 contracts of soymeal that had been registered for delivery against CBOT futures, the exchange said Thursday (June 3).

CBOT said 108 contracts of soymeal were registered for delivery as of Thursday evening, down from 390 a day earlier, with all the cancellations listed under Bunge soy crushing plants.

The report confirmed trade rumours Thursday that sent CBOT soymeal futures soaring, with the spot July contract SMN0 settling up 4.6% at US$284 per tonne.

The cancellations reflect a tightening cash market for soymeal. A strong cash market tends to pull commodities out of the delivery market by offering commercial firms a better price than the one represented by the CBOT futures contract.

Earlier in April, Bunge Ltd. reported a profit of US$63 million in the first quarter, compared with a loss of US$195 million in the prior-year quarter.