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Price slump continues as U.S. crop picture improves

HAMBURG - European animal feed meal prices fell again on Tuesday as expectations of a bumper U.S. soybean harvest intensified. "The latest reports on Monday were again positive for the U.S. soybean crop and the outlook for good U.S. export suppli...

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REUTERS/Jim Young/File Photo

HAMBURG - European animal feed meal prices fell again on Tuesday as expectations of a bumper U.S. soybean harvest intensified.

"The latest reports on Monday were again positive for the U.S. soybean crop and the outlook for good U.S. export supplies in coming months has weakened prices again," one trader said.

Some bargain-hunting was seen after recent price falls with rapid delivery sought. In Europe, Argentine high protein soymeal for July delivery traded at $409 a metric ton CIF Rotterdam with no comparative trades reported on Monday.

U.S. soybean and soymeal futures fell over 2 percent Monday, with soybeans hitting three-month lows on pressure from favourable weather forecasts for the developing U.S. crop.

A U.S. Department of Agriculture (USDA) report after markets closed on Monday also said the U.S. soybean crop was rated at 71 percent good to excellent as of July 24, unchanged from a week earlier and 1 percentage point above market expectations.

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"Overall, the U.S. crop conditions are looking fabulous and a lot of buyers are holding off with purchasing, expecting a good U.S. crop to pressure prices," another European trader said.

In Europe, Brazilian high protein soymeal for August delivery fell $5 a metric ton, offered for sale at $439 a metric ton CIF Rotterdam.

Argentine high protein soymeal for August delivery fell $6 a metric ton to $411 a metric ton CIF Rotterdam.

EU produced high protein soymeal fell $5 a metric ton, offered for sale at $414 a metric ton FOB Rotterdam for August delivery.

Brazilian soymeal prices have fallen around 7 percent in the last week, Argentine by about 6 percent and EU prices by 5 percent as the U.S. crop outlook improved.

Rapeseed meal was again pushed down by the general market weakness in the face of continued expectations of problems with the EU rapeseed crop.

Rapeseed meal fell 3 euros to 199 euros a metric ton FOB lower Rhine for August delivery. 

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