January 2, 2004



US Soymeal Basis Offers To Persist Stronger Tone


Spot soymeal basis offers remain unchanged in the United States' Midwest on Wednesday, but the basis persist a stronger tone as slowed crushing restricted the availability of soymeal in some areas, dealers said.


Some Midwestern processors took downtime last weekend from Friday to Monday, leaving soymeal supplies tight after four consecutive days without crushing.


The reduced crush left some processors short for near-term needs. Dealers said some plants were buying soymeal in from other locations to cover nearby commitments.


And some locations were seeing an increase in buying interest after a month of weak basis levels and slow buying activity. The tighter stocks and increased interest solidified the basis and gave the cash price a strong tone, dealers said.


"It seems like the basis finally got cheap enough that there's some more demand showing up. It feels like there's a firmer tone," one Missouri dealer said.


Dealers continued to roll offers to the CBOT March soymeal contract, which was trading at a premium to front-month January.


At the CBOT mid session, January soymeal (SMF4) was up $1.20cents at $242.00 and March soymeal (SMH4) was up 70 cents at$244.50. The January board crush was down about 1 cent at 53.29cents per bushel.


Spot CIF Gulf barge soymeal offers were $1 weaker at $5over the CBOT January contract, and FOB offers were down $2 at$9 over as the export market remained quiet, export traders said.


Forward CIF offers for January were $1 softer at $7 over the nearby contract and February-March offers were also off $1at $7 over. FOB forward offers for January and February were down $2 at $9 over while March offers were steady at $12 over.


The Commodity Credit Corp. (CCC) on Tuesday announced it is seeking 3,000 tons of crude soyoil for Guatemala for delivery between Feb. 10 and Feb. 25. The CCC is also seeking 1,000 tons of crude soyoil for Malawi for delivery between Jan. 21and Feb. 21.

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