SOYCOMPLEX COULD RALLY ON TIGHT U.S. FEED SUPPLY
  Nearby months in soybean and soymeal
  futures could post a short-term rally on tightening supply of
  livestock feed, even if favorable growing conditions keep the
  new crop outlook bearish, traders said.
      "A lot of soymeal dealers are just getting very worried
  about where processors will get their soybeans this Summer,"
  one Illinois soyproduct dealer said.
      Processors are competing vigorously with river dealers for
  the few soybeans being offered by country elevators, with a
  Decatur, Illinois processor raising its spot soybean basis bid
  another two cents today to 10 over July futures.
      Farmer marketings of old crop soybeans continue very light,
  with flat prices apparently well below levels they are willing
  to sell, dealers said.
      Some terminal elevator operators are coming to the belief
  that even if futures rally back to last month's highs, country
  movement may remain light because farmers in many areas are
  sold out of old crop soybeans, particularly in the eastern half
  of the Midwest.
      Soybean processors will continue to take seasonal downtime
  for maintenance if soybeans remain difficult to buy, reducing
  the weekly soybean crush rate still further and keeping the
  spot soymeal basis strong, dealers said.
      Futures traders said tight cash supplies should help July
  soybeans and soymeal gain on deferreds. July soymeal has
  already moved to a premium over the August through October
  months and old crop July/new crop November soybeans may also
  move to a July premium later this month, they added.
  

