(AgWeek) – Prices dropped in Europe’s animal feed meal market on Thursday as attention returned to expectations of a huge soybean harvest in the United States which could improve supplies on world export markets.No significant trading was reported.
Buyers were restrained ahead of the monthly world supply and demand report from the U.S. Department of Agriculture (USDA) late on Friday which is expected to raise its forecast of the U.S. soybean crop, which could approach a record size.
European prices were also weakened by a fall in Chicago soybean and soymeal futures on Wednesday, in turn pressured by improving U.S. crop weather and profit-taking.
European prices had firmed this week after U.S. exporters booked massive and unexpected export sales of about 2.4 million metric tons of soybeans in past days.
“There is uncertainty in the European market about the price impact the USDA report will bring,” one European trader said. “A huge U.S. soybean crop of record proportions should ease fears about tight soymeal export supplies after poor crops in South America this year.”
“But the sudden burst of U.S. exports in the last few days has led to expectations the USDA could reduce its estimate of U.S. soybean inventories which could push prices up.”
In Europe, Argentine high protein soymeal for August delivery fell $5 a metric ton, offered for sale at $404 a metric ton CIF Rotterdam. Brazilian high protein soymeal for August delivery fell $3 a metric ton, offered for sale at $431 a metric ton CIF Rotterdam.
EU produced high protein soymeal fell $5 to $402 a metric ton FOB Rotterdam for August delivery.
Rapeseed meal fell 6 euro to 191 euros ($213.3) a metric ton FOB lower Rhine for August delivery.
