US soymeal supplies tight on harvest delays, strong demand
Basis offers for soymeal were steady with a firm tone at U.S. Midwest rail and truck points as soybean harvest delays continued to slow processors' crushing pace, restricting spot supplies of the feed ingredient. Spot basis was unquoted at several Iowa crushing plants as a shortage of replacement soybeans curbed available supplies of soymeal.
CHICAGO, Sept 21 (Reuters) — Basis offers for soymeal were steady with a firm tone at US Midwest rail and truck points on Monday as soybean harvest delays continued to slow processors' crushing pace, restricting spot supplies of the feed ingredient, merchandisers said. The spot basis was unquoted at several Iowa crushing plants as a shortage of replacement soybeans curbed available supplies of soymeal. "Beans are really tough to come by," one dealer said. Weekend rains stalled harvest activity in the northern and northwestern Midwest.
While forecasts called for drier conditions in the region this week, showers were expected in the eastern Midwest. Ahead of the US Department of Agriculture's weekly crop progress report later on Monday, analysts surveyed expected the agency to report the US soybean harvest at 12% complete nationally, up from 6% last week. Logistics posed another challenge for the cash market, a merchandiser said, as delivery trucks were in short supply and diesel prices remained elevated. 40 a ton, but both contracts stayed below life-of-contract highs set last week.
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