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Veteran Contributor

A lot of talk about.........

Importing corn from South America. Does anyone know how much it costs at the ports there? Then how much to ship it to our ports?

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8 Replies
Veteran Advisor

Re: A lot of talk about.........

Then, assuming the ports don't use all that much, how much to get it to where it's needed?  I'd think it costs more to ship upriver than down.

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Veteran Advisor

Re: A lot of talk about.........

Read today that  May corn at the port in Argentina could be purchased for $29/mt less than corn at the US gulf

 

Last week it was reported that a SE Minnesota terminal was opening for the season and was due to load 40 barges, but not a single one wsa destined for the gulf....all staying domestic

 

Brazil and Argentina are prepared to act on these very strong US corn basis levels while US new crop is still 5-6 months away...

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Senior Contributor

Re: A lot of talk about.........

Ray,

I have a lot of respect for you here, but I wish you would talk in a language that would help.  This last post told me nothing!!! 

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Veteran Contributor

Re: A lot of talk about.........

Ray, if I did the math correct, that's .75 cents per bushel cheaper? Seems like you would have just as much or more into it after freight. Correct me if I figured wrong.

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Veteran Advisor

Re: A lot of talk about.........

OK, here goes:

 

Item #1 ......Exporters can buy corn in Argentina 75 cents cheaper than they can buy corn in the US.....doesn't bode well for US corn exports rest of the summer......that also makes it attractive to import corn into US coastal regions on both coasts.....

 

Item #2.....normally all of those 40 barges would be destined for the gulf and that corn exported out of the US......that corn is being used for US domestic consumers, who are willing to pay enough more to keep the corn here instead of letting it leave the country

 

Item #3......most folks are focused on the cash price of corn instead of basis......basis is what determines where corn goes and who gets the business in the global markets......while the US farmer is discouraged by lower cash prices, he is not paying attention to the incredibly strong interior basis levels.....and in fact, is likely going to let them slip away over time..

 

Not so for our foreign competitors who are going to keep selling "early and often" into these strong basis levels, even as they erode over time, because they recognize that we probably start over from square one with harvest time basis levels this fall....

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Highlighted
Contributor

Re: A lot of talk about.........

Ray will a ship deliver corn to the Gulf for 75 cents per bu? Do you know what the shipping cost from Argentina to Gulf is?

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Senior Contributor

Re: A lot of talk about.........

Thanks Ray! Still learning here!

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Senior Advisor

Re: A lot of talk about.........

Is corn getting to the Brazailian ports OK, or is getting it to the terminal a problem?

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