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

Bulk Carrier Trends

China Shipyards Bag the Week's Ocean-going Newbuild Orders

Reported ordering this week has been exclusively focussed on the Chinese yards, says Clarkson Hellas in their latest 'S&P Weekly Bulletin'. Dry bulk carriers COSCO

Marseilles Fos Reports Mixed First Half

First-half container traffic at leading French port Marseilles Fos totalled 583,287 teu – up 7% on the first six months last year - marked by a 10% increase at the deepsea Fos terminals.

GPA Sets Tonnage Record

The Georgia Ports Authority moved more than 29 million tons of cargo, 3 million twenty-foot equivalent container units (TEUs) and more than 700,000 auto and machinery units in Fiscal Year 2014.

Finance

China Shipyards Bag the Week's Ocean-going Newbuild Orders

Reported ordering this week has been exclusively focussed on the Chinese yards, says Clarkson Hellas in their latest 'S&P Weekly Bulletin'. Dry bulk carriers COSCO

Aker Philadelphia Shipyard ASA: Purchase of own shares

Aker Philadelphia Shipyard AKPS), a leading U.S. commercial shipyard constructing vessels for operation in the Jones Act market, has on July 25, 2014 purchased 1,

Scorpio Tankers Report Q2, 1H 2014 Profit Slip

Scorpio Tankers Inc. has reported its results for the three and six months ended June 30, 2014. Highlights excerpted here as follows: Results for the three months ended June 30,

News

Control of Emission from Vessels in Hong Kong Waters

Amendments to the Shipping and Port Control Ordinance (Cap. 313) and the Merchant Shipping (Local Vessels) Ordinance (Cap. 548) to enhance the control of dark

Holland America Line Offers ‘Explore 4’ Early Booking

Holland America Line knows the trend for savvy travelers is to book vacations well in advance. To encourage those early bookings the line is returning with its

Aker Philadelphia Shipyard ASA: Purchase of own shares

Aker Philadelphia Shipyard AKPS), a leading U.S. commercial shipyard constructing vessels for operation in the Jones Act market, has on July 25, 2014 purchased 1,

Barges

Horizon Delivers 4th 74’ Towboat for Canal Barge Co.

Horizon Shipbuilding, Inc., Bayou La Batre, AL, has delivered the fourth in a series of 74’ towboats to Canal Barge Company, Inc. of New Orleans, LA.    The Jane

Samudra Containership Rationalisation Hits Revenues

Diversified Singapore-based containership owners Samudra Group reports registered revenue of USD 96.9 million for the second quarter ended 30 June 2014, a 7.6% decline from USD 104.

Nation’s Vessel Operators Join EPA as SmartWay Affiliate

The American Waterways Operators, a 350-member trade association representing the U.S. tugboat, towboat and barge industry, announced today that it joined the SmartWay Transport Partnership,

Logistics

Marseilles Fos Reports Mixed First Half

First-half container traffic at leading French port Marseilles Fos totalled 583,287 teu – up 7% on the first six months last year - marked by a 10% increase at the deepsea Fos terminals.

Evergreen Enhances UK and Ireland Services

Global container carrier Evergreen Line announced enhancements to its services to/from Dublin (Ireland) and Liverpool (Northwest England). From its hub in Rotterdam,

Private Buyers in Iran Look to Boost Grain Market

One sign of change in Iran as it works toward a nuclear deal with world powers is the way it is feeding itself, with private grain firms beginning a slow return

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Maritime Standards Naval Architecture Navigation Pod Propulsion Port Authority Salvage 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: 0.1351 sec (7 req/sec)