Course Change for China-bound U.S. Sorghum Bulker
A vessel carrying 58,503 tonnes of sorghum from the United States switched its destination from China to South Korea early on Thursday, according to Thomson Reuters Eikon ship tracking data. The Peak Pegasus loaded U.S. sorghum from trader ADM's Corpus Christi grain elevator in Texas and departed on April 3 for Nansha in southern China, according to U.S. Department of Agriculture data. It is now due to arrive in Gunsan in South Korea on May 10, according to the data. The cargo is one of almost two dozen bought by China but now stranded after Beijing said it would impose a hefty deposit on U.S.
U.S. Ethanol Makers Snap Up Cheap Sorghum after China Tariffs
U.S. ethanol makers have joined global livestock producers to snap up discounted American sorghum supplies after buyers in China backed out of deals due to stiff anti-dumping tariffs on the grain imposed by Beijing in a mounting trade dispute. Sorghum is used to feed animals and represents a fraction of the billions of dollars of goods that move between the world's two largest economies. The trade conflict between the United States and China has already hit shipments of agricultural produce and threatens to disrupt the flow of everything from steel to electronics.
China-bound US Sorghum Diverted to Saudi Arabia, Japan
Four U.S. sorghum shipments initially bound for China have been diverted to other countries after Beijing's move last week to impose hefty anti-dumping deposits on imports of the grain from the United States, according to trade sources and Reuters shipping data.Three of the cargoes are now sailing for Saudi Arabia after being sold to a private buyer, a U.S. trader and a Middle East-based trading source with knowledge of the matter said Tuesday. A fourth ship is heading to Japan…
Ships Carrying US Sorghum U-turn after China Tariffs
Several ships carrying cargoes of sorghum from the United States to China have changed course since Beijing slapped hefty anti-dumping deposits on U.S. imports of the grain, trade sources and a Reuters analysis of export and shipping data showed.Sorghum is a niche animal feed and a tiny slice of the billions of dollars in exports at stake in the trade dispute between the world's two largest economies, which threatens to disrupt the flow of everything from steel to electronics.The supply-chain pain felt by sorghum suppliers on the Pacific…
Flooding Cripples Grain Barge Shipments in U.S. Midwest
Grain barge shipping came to a near standstill in parts of the U.S. Midwest on Thursday as recent heavy rain and melting snow swelled rivers, halted barge loading and sidelined the towboats that haul farm belt crops to Gulf Coast export terminals. The flooded waterways sent cash premiums for corn barges delivered to Gulf Coast terminals soaring. Rates hit peaks on Thursday that have not been seen in 18 months, as exporters scrambled to secure enough grain to top off vessels bound for overseas markets, traders said.
Barge Shipments of Brazil Soy Bound for US Midwest Crushers
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.
Blocked Entrance to Santos Port to Open Overnight
Trucks will be able to access a blocked entrance at Santos, Brazil's largest port, at night while firefighters finish extinguishing a blaze at a nearby fuel-storage facility, city and port authorities said. The more flexible rules will provide some relief for grain exports that have slowed since Monday, when authorities restricted truck access to terminals on one side of the port while flames are extinguished. The firefighters' office in Sao Paulo state said via Twitter that one of six fuel tanks at the facility operated by Ultracargo, a unit of Brazilian chemical and fuel-distribution company Grupo Ultra, was still on fire. Highway police are escorting truck convoys past the blocked entrances, and 750 passed through in a convey on Tuesday.
Cargill to Build Grain Terminal in West Memphis
U.S. agribusiness Cargill Inc said it will build a grain handling facility in West Memphis, Arkansas, to purchase corn, sorghum, soybeans and wheat that the company could ship down the Mississippi River to U.S. Gulf Coast export terminals. Minneapolis-based Cargill, one of the world's largest private companies, said on Thursday it will invest $45 million in the terminal in West Memphis, located on the western bank of the Mississippi. The river is the main shipping route to the Gulf, where about 60 percent of all U.S. corn, soybeans and wheat exports exit the country. When completed, the elevator will be capable of loading up to eight barges daily and of holding up to five barges, Cargill said in a release that did not provide a timeline for the project.
U.S. Food Could Be Headed To Cuba
Reuters reported that, for the first time in nearly four decades, a shipment of food from the U.S. could be headed to Cuba. According to the report, Archer Daniels Midland Co. - pending final U.S. Administrative approval - awaits to transport the corn, having already received approval to sell it, the New York-based U.S.-Cuba Trade and Economic Council reported. The shipment is said to consist of 24,000 metric tons of corn from seven states. Last fall, the U.S. enacted legislation that eased some restrictions to allow cash sales of food and medicine to Cuba. A Singapore-registered and Mexican-owned bulk carrier M.V. Ikan Mazatlan is said to be the ship selected to carry the first U.S. shipment
Baltic Exchange Mulls New Freight Indexes for Grains, LNG
The Baltic Exchange is looking into launching freight indexes for grains and liquefied natural gas (LNG) as the London-run business targets new markets after its acquisition by Singapore Exchange last year, the Baltic's chief executive said. Founded in 1744 as a forum for chartering vessels, the Baltic Exchange now produces benchmark indexes for global shipping rates and owns a trading platform for the multi-billion dollar freight derivatives market. SGX's ownership of the Baltic has enabled the exchange to set its sights on developing new areas…
Mississippi River Reopens to Barges after Gustav
The entire Mississippi River, the most important commercial waterway, has reopened to barge traffic after being closed near due to Hurricane Gustav, the Coast Guard said. More than 300 miles of the commercial waterway, stretching from to the , was closed following the landfall of the Category 2 hurricane on Monday. Reports said major grain companies such as Cargill Inc, Archer Daniels Midland Co and Bunge Ltd are still awaiting electricity to be restored to their grain export terminals on the lower Mississippi River in .
ADM Buys 5 Ships to Network
According to an Oct. 15 report from the Associated Press, Agribusiness leader Archer Daniels Midland Co. said it has acquired five cargo ships to help it transport grain worldwide with greater flexibility and at lower cost than outside carriers. (Source: Associated Press)
Cargill Earnings Hit by Commodity Market Disruptions
Cargill Inc said on Tuesday its quarterly earnings fell 28 percent, making it one of the largest companies yet to demonstrate how big commodity market disruptions this year have hurt its bottom line. Minneapolis-based Cargill, a top global commodities trader, was hit by a triple-whammy of unexpected events, including a surge in energy prices in January, rail backlogs, and the rejection of U.S. corn shipments by China. The problems are likely to have also hit Cargill peers such as Archer Daniels Midland Co and Bunge Ltd, which are due to report financial results in the coming weeks. The coldest winter in 30 years catapulted regional U.S. natural gas prices to record highs, while power markets gyrated as producers struggled to keep supplies flowing to consumers.
ADM to Sell 50% Stake in Brazil Export Terminal to Glencore
U.S. agribusiness company Archer Daniels Midland Co has agreed to sell a 50-percent stake in its Barcarena grain export terminal in northern Brazil to commodities trader Glencore PLC, the company said during an analyst call on Tuesday. The companies are planning to increase the terminal's annual capacity to 6 million tonnes, from the current 1.5 million tonnes, after the deal, which is expected to close in the first half of 2015 pending regulatory approvals, ADM later detailed in a news release. The upgrade will allow the terminal to begin loading larger panamax vessels, which can hold around 60,000 tonnes, the company said. "Agricultural production is expanding rapidly in northern and western Brazil…