July 17, 2013

Soymeal demand on European meals, feeds market rises again

Buoyed by concern about tight supplies of old crop US soy, soymeal on the European meals and feeds market rose on Wednesday (Jun 26).

"Tight stocks will keep supporting soymeal prices on the European cash market. Buyers are not willing to purchase the firmer levels, believing that a shift from corn to soy plantings and chances of a bumper US crop could weigh on prices eventually," one broker said.

South American soymeal was offered between unchanged and US$6/tonne up from Tuesday (Jun 25), mostly following Wednesday's (Jun 26) CBOT soymeal futures close. Bids were scarce and no deals were reported.

Most other products were offered between US$1.31 up and US$2.63 down from Tuesday, supported by strength in soymeal. Gains were capped by weaker rapeseed futures. Buyers showed little interest and no deals were reported.