Barge Shipments of Brazil Soy Bound for US Midwest Crushers

MarineLink.com
Thursday, May 08, 2014

Deep discounts for Brazilian soybeans are creating an unexpected new market with U.S. processors and animal producers far upstream in the heart of the Midwest farm belt where the beans will be shipped on barges.

While light soybean imports by U.S. users along the Gulf and East Coast are not uncommon, it has been nearly two decades since South American supplies were unloaded at the Louisiana Gulf and towed up the Mississippi River to inland processors.

The current trend reverses the usual flow of barge traffic and sees ports around New Orleans which usually load ocean-going ships with beans switching to unloading arrivals onto barges.

One processor owned by CGB Enterprises Inc in Mount Vernon, Indiana, on the lower Ohio River paid 30-35 cents per bushel above Chicago Board of Trade soybean futures for more than 10 barges (about 14,000 tonnes) of Brazilian soybeans for arrival in late May or early June, four U.S. cash sources said.

That is about 25 cents below bids from processors in the state who do not have access to the river market.

The beans were bought from Gavilon Group LLC, owned by Japanese trading house Marubeni Corp, the sources said.

"It's kind of like a fire sale at a furniture store ... once that's gone, it's back to normal price," a soy buyer at an Indiana processor said.

Cargoes of Brazilian soybeans that were originally bound for China have been offered at steep discounts as the world's top importer cancelled or defaulted on purchases.

U.S. traders have been taking advantage of these prices to buy as much as 1.2 million tonnes of Brazilian soybeans.

Archer Daniels Midland Co was expected to eventually ship much of the soybeans from a 62,000-tonne vessel loading this week in Brazil up the Mississippi River to a processor in Quincy, Illinois, while Bunge Ltd was likely to crush Brazilian beans at its processors in Destrehan, Louisiana, and Decatur, Alabama, according to the cash sources.

Shipping data available to Reuters showed that a Marubeni vessel carrying 60,000 tonnes of beans was scheduled to arrive on Thursday in Mobile, Alabama, while Noble Group, majority-owned by China state trader COFCO, had ordered a vessel of 30,000 tonnes of soybeans, loading at Brazil's Ilheus port, bound for the United States.

The companies declined to comment on trading activities. The cash sources declined to speak for attribution because of competitive interests.

Total imports of soybeans to the United States on the books are near the record forecast of 1.77 million tonnes in the 2013/14 marketing season from the U.S. Agriculture Department but supplies are still expected to shrink to just two weeks' worth by the end of summer.

Soyoil produced from the Brazilian beans is unlikely to be used for biofuel as it would disqualify fuel makers from being eligible for the sellable biofuel credits known as RINs.

Imports are coming from Canada, too. Through the first three months of the year, a record 202,000 tonnes crossed the border into the United States, U.S. Census Bureau data showed.

"We need the imports," said Ronnie Edge, marketing manager at Kentucky's Owensboro Grain Co. "We're getting beans from Illinois and St. Paul (Minnesota) already. We're OK to take Canadian beans but haven't bought any."

(By Michael Hirtzer; Additional reporting by Karl Plume in Chicago; editing by Matthew Lewis)

Maritime Reporter August 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Finance

Bunkers International Files for Bankruptcy

U.S. based bunkering services firm Bunkers International Corp. announced August 28 that it has filed for reorganization under Chapter 11 of the Bankruptcy Code.

Asia-N.Europe Box Rates Jump 26 pct

Shipping freight rates for transporting containers from ports in Asia to Northern Europe jumped by 26 percent to $591 per 20-foot container (TEU) in the week ended on Friday,

Greek Coastguard Rescues 2,500 over Three Days

Greece's coastguard has rescued about 2,500 migrants and refugees off the country's eastern islands over the past three days, authorities said on Monday, as the

News

Bunkers International Files for Bankruptcy

U.S. based bunkering services firm Bunkers International Corp. announced August 28 that it has filed for reorganization under Chapter 11 of the Bankruptcy Code.

Private Ship Repair Moves Dry Dock Timelines

A delay in private repairs to the hospital ship Africa Mercy has caused a two-and-a-half week adjustment of timelines for Transnet National Ports Authority’s R30

Cargo Ship Collides with Fueling Vessel at Sea

A 24-meter fuelling vessel, Erin Wood, was towed to Peterhead Saturday after a collision with a Cyprus registered cargo vessel, Daroja, the U.K. Maritime and Coastguard Agency (MCA) reported.

Barges

MN 100: Bouchard Transportation

The Company: Bouchard Transportation’s history dates back to its incorporation in 1918 by founder, Capt. Fred Bouchard, the youngest tugboat captain in the Port of New York.

ASL Shipyard Secures S$140mln Build Contracts

ASL Shipyard Pte Ltd. a wholly-owned subsidiary of ASL Marine Holdings Ltd., has secured new shipbuilding contracts worth approximately S$140 million for the construction

The Maritime Person of the Year

The Massachusetts Maritime Academy’s annual salute to ‘the person of the year’ this year spotlights McAllister Towing and Transportation Co. and its leadership team.

Intermodal

Asia-N.Europe Box Rates Jump 26 pct

Shipping freight rates for transporting containers from ports in Asia to Northern Europe jumped by 26 percent to $591 per 20-foot container (TEU) in the week ended on Friday,

CMA CGM-led Consortium Win Box Terminal Bid

The consortium formed by CMA CGM, Bolloré and CHEC won the bid process initiated by the Cameroonian government Following the bidding procedure initiated by the Cameroonian government,

DP World H1 Earnings Jump, Mulls Iran launch

DP World may launch operations in Iran, the company's chairman said on Thursday, as the global ports operator reported a jump in half-year earnings after buying assets from its parent company.

Logistics

Asia-N.Europe Box Rates Jump 26 pct

Shipping freight rates for transporting containers from ports in Asia to Northern Europe jumped by 26 percent to $591 per 20-foot container (TEU) in the week ended on Friday,

Greek Coastguard Rescues 2,500 over Three Days

Greece's coastguard has rescued about 2,500 migrants and refugees off the country's eastern islands over the past three days, authorities said on Monday, as the

HMAS Canberra Initial Operational Capability

The Royal Australian Navy’s Amphibious Ship, HMAS Canberra, has completed a graduated operational test and trials program to achieve a key milestone towards Initial Operating Capability.

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Maritime Security Maritime Standards Offshore Oil Pod Propulsion Salvage Ship Repair Ship Simulators Winch
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1945 sec (5 req/sec)