Late on Monday, the dry bulk carrier MV Milagro, under the Maltese flag, knocked into the water one of the four grain loaders at the Guaruja Grain Terminals (TGG) complex at Santos, Latin America’s largest port, a TGG representative said on Tuesday. Brazil, expected by the USDA to displace the United States as the world’s top exporter of soybeans this year, started harvesting a 70 million-tonne soy crop and a corn crop forecast at 60 million tonnes several weeks ago. The flow of the grains through the ports is picking up and normally peaks in April.
Because of this logistical situation and seasonal trend in soybean products spread, we think that spreads in the soybean complex will continue to narrow over the next several weeks. Soybean meal and soybean oil export sales have noticeably improved from the last week’s export sales report.
This is the July/ Dec spread in Soybean Meal:
This is the July/ Dec spread in soybean oil:
And lastly, the March / November soybean spread has been narrowing in the last few days:
Bean cash markets in the beans are still very strong because of recent sales to the Chinese for 2011/12 and 2012/13 in the past week. Barge market continues above delivery equivalent which could continue to narrow spreads.
Please contact Edgard Cabanillas via email – edgard@commoditypage.com, or telephone 949-943-3705
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