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 Today


The Maritime Industry's original and most viewed E-News Service

Maritime Reporter January 2016 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Finance

Funding Secured for Project to Deepen the Delaware River

Dennis Rochford, president of the Maritime Exchange for the Delaware River and Bay, announced that President Obama’s FY17 proposed budget includes $33 million for the Delaware River Deepening Project.

Top 10 Shipowning Nations by Value

VesselsValue has provided a list ranking the top shipowning nations by value, including the percentage change difference against 2015 figures. Although the

Port of Hamburg Reports Bulk Cargo Jump in 2015

The Port of Hamburg reports higher bulk cargo throughput and strong growth in rail and inland waterway seaport-hinterland traffic in 2015 – downturn in container handling.

News

US, India Consider Joint Patrols in South China Sea

The United States and India have held talks about conducting joint naval patrols that a U.S. defense official said could include the disputed South China Sea, a move that would likely anger Beijing,

No Need to Change Tug Workers’ Hours -Study

The American Waterways Operators (AWO), the national trade association for the tugboat, towboat and barge industry, hailed a study conducted for the Transportation

Danelec Marine Making Free ECDIS Upgrades

Ships with older Danelec ECDIS models are being upgraded to new hardware and software   Danelec Marine has launched a program to provide free upgrades of shipboard

Barges

No Need to Change Tug Workers’ Hours -Study

The American Waterways Operators (AWO), the national trade association for the tugboat, towboat and barge industry, hailed a study conducted for the Transportation

Brazil Agricultural Waterway Finally Reopens

Brazil's Tiete-Parana waterway, a key transport corridor for soybeans, corn, cellulose, fertilizer and other agricultural products, has reopened after a 20-month

EU Pulls Plug on Back-Up Nav System

A British-led initiative to create a back-up to satellite navigation systems for ships has been pulled after failing to garner interest from other European countries,

Intermodal

Port of Hamburg Reports Bulk Cargo Jump in 2015

The Port of Hamburg reports higher bulk cargo throughput and strong growth in rail and inland waterway seaport-hinterland traffic in 2015 – downturn in container handling.

Maersk CEO Looks to Increase Market Share

A.P. Moller-Maersk's chief executive said its container shipping arm Maersk Line probably gained market share in the second half of 2015 after losing some in the first half of the year.

Maersk Writes Down Oil Assets

Writedown pushes company into red in fourth quarter; 2016 profit to fall short of previous year. Denmark's A.P. Moller-Maersk tumbled to a loss of $2.5 billion

Logistics

Sydney Deep Water Port Project Named NOVAPORTE

The Harbor Port Development Partners (HPDP) and the Port of Sydney announce the new brand for Sydney’s new container terminal: NOVAPORTE and its adjacent logistics park NOVAZONE.

Port of Hamburg Reports Bulk Cargo Jump in 2015

The Port of Hamburg reports higher bulk cargo throughput and strong growth in rail and inland waterway seaport-hinterland traffic in 2015 – downturn in container handling.

U.S. Okays ConocoPhillips Alaska LNG Exports

The U.S. Department of Energy approved ConocoPhillips' application to export about 40 billion cubic feet of natural gas from its Kenai liquefied natural gas export

 
 
Maritime Careers / Shipboard Positions Maritime Security Maritime Standards Navigation Salvage Ship Repair Ship Simulators Shipbuilding / Vessel Construction Sonar 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: 0.1127 sec (9 req/sec)