The soymeal futures market has seen increased spread trading between May and July contracts, reflecting traders’ hedging against possible supply chain disruptions. Open interest rose by 4%, signaling renewed liquidity in agricultural commodity markets. Traders were likely squaring up following a couple days of buying on a potential for easing of trade tensions ahead of the Trump/XI meeting later this month. Soybean meal is the primary input to animal feed in industrialized agriculture worldwide, used as a valuable source of protein for raising pigs and poultry. Accordingly, soybean production and importation generally supports meat production, though soybean meal is also consumed by humans in the form of tofu, soy milk and imitation meat, in addition to industrial use. Soybean meal is produced through a process called crushing, whereby whole soybeans are processed to produce soybean meal and soybean oil. Soymeal futures for December delivery traded sideways today, reflecting caution ahead of key South American planting updates. If conditions deteriorate, deferred contracts could see strong risk premiums built into prices.