Soybean meal futures are seeing it’s biggest monthly gains in four decades as livestock & poultry feed made from soybeans is soaring due to rail-trains not being able to get feed to the animals fast enough. Soybean meal futures are down over $15 per ton currently trading at $381 in Chicago (as of this writing).
The “Association of American Railroads” date show weekly speed-train (deliveries) fell last week to the slowest rates since Spring of 2010 – while terminal waiting delays rose to its highest level since July. Soybean meal futures have spiked 31% this month alone with meat prices hovering near record highs spurring the current soy-feed demand against current shipping delays from processing plants in the Midwest.
Barb Levy, chief director for The Fox Group’s futures division in Chicago, shared her insight regarding the current soybean meal futures situation by stating today, “(Soybean meal futures) surged higher this week due in large part to farmers holding back supplies rather than selling them at recent low prices. Livestock farmers account for the large demand for soymeal as they are sitting on large herds, and are trying to deal with the tight supply situation and delivery difficulties due to problems with transportation of the product.”
Soybean meal futures are clearly up with no top yet in sight. I exited our soybean meal futures position prematurely when it appeared a pull-back was in order. I am looking for a way back in…
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