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 September 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Finance

Nordic American Offshore Declares Dividend

Nordic American Offshore Ltd. today announced that its board of directors has declared a dividend of $0.45 per common share for the third quarter 2014. This is the same as for the second quarter 2014.

Bollore Africa Logistics Sees Profit Plunge in H1

First half 2014 profit at shipping company Bollore Africa Logistics plunged to 5.89 billion CFA francs ($11.48 million) from 9.45 billion CFA francs in the same period last year,

Maduro Says Venezuela's 2015 Budget to Put Oil at $60

Venezuela's 2015 budget will be based on a target oil price of $60 dollars per barrel, President Nicolas Maduro said on Friday night, but he repeated expectations that prices will recover.

News

Nordic American Offshore Declares Dividend

Nordic American Offshore Ltd. today announced that its board of directors has declared a dividend of $0.45 per common share for the third quarter 2014. This is the same as for the second quarter 2014.

Missouri River Basin is Booming

The U.S. Army Corps of Engineers Missouri River Basin Water Management Division is maintaining above normal releases at the four lower dams on the Missouri River.

Bollore Africa Logistics Sees Profit Plunge in H1

First half 2014 profit at shipping company Bollore Africa Logistics plunged to 5.89 billion CFA francs ($11.48 million) from 9.45 billion CFA francs in the same period last year,

Barges

Missouri River Basin is Booming

The U.S. Army Corps of Engineers Missouri River Basin Water Management Division is maintaining above normal releases at the four lower dams on the Missouri River.

Smith Brothers Chrtisten New Tug

Smith Brothers, Inc., Chesapeake Bay-based barge and marine equipment charter company, recently added the tug Capt. Kenneth to its fleet of inland and truckable tugs.

World’s 1st LNG Hybrid Barge Christened "Hummel"

The world’s first LNG hybrid barge of Becker Marine Systems was christened with the name "Hummel" on October 18, 2014, at Grasbrook Quay in HafenCity Hamburg.

Intermodal

Philippines Approves $3.7 bln worth of new PPP projects

Philippine President Benigno Aquino on Friday gave authorities the go-ahead to offer for tender 165.6 billion pesos ($3.7 billion) worth of new infrastructure projects

Maersk to Bump Asia-Europe Rates

Container shipping company Maersk Line, a unit of Danish conglomerate A.P. Moller-Maersk , plans to raise freight rates sharply on main routes from ports in Asia to ports in northern Europe,

BG Group wins EXXON LNG Cargo

ExxonMobil's Papua New Guinea liquefied natural gas (LNG) export project has awarded a November cargo to BG Group as part of a two-cargo tender that closed this week, two traders said.

Logistics

Missouri River Basin is Booming

The U.S. Army Corps of Engineers Missouri River Basin Water Management Division is maintaining above normal releases at the four lower dams on the Missouri River.

Bollore Africa Logistics Sees Profit Plunge in H1

First half 2014 profit at shipping company Bollore Africa Logistics plunged to 5.89 billion CFA francs ($11.48 million) from 9.45 billion CFA francs in the same period last year,

GAO: Ending Crude Export Ban Could Ease 'Price at the Pump'

As the energy profile of the U.S. continues to improve and evolve daily, fresh debate in favor of exporting oil and gas products -- which would have a significant impact on the U.

 
 
Maritime Careers / Shipboard Positions Naval Architecture Offshore Oil Pipelines Port Authority Salvage Ship Electronics Ship Repair Shipbuilding / Vessel Construction Sonar
rss | archive | history | articles | privacy | terms and conditions | 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: 0.1593 sec (6 req/sec)