June 12, 2009
Low US soy stock raise concerns for soymeal
Decreasing US soy stocks have raised concern that soymeal for animal feed could also running low.
This will mean that more soymeal needs to be imported from South America. Traders said that the most likely destination for any imported South American soymeal would be the US East Coast, with eastern pig producers the most likely customers.
US soymeal prices have been driven higher by concerns about shrinking old-crop soybean supplies.
According to latest US Agriculture Department data, US old-crop soy stocks are projected to shrink to 130 million bushels by the end of the current marketing year on August 31.
