A drop in prices due to abundant local supplies is making Brazil an attractive origin for soybeans, with at least two vessels carrying a combined 79,150 tonnes of Brazilian product heading to the U.S. in the next few days, according to shipping data.

The CS Satira, chartered by The Andersons, is expected to set sail on April 30 carrying 33,000 tonnes of Brazilian soybeans from the port of Santarem to the U.S., shipping data from Cargonave showed on Thursday.

A bigger cargo of 46,150 tonnes will be shipped by charterer Bunge Ltd from the port of Itacoatiara on April 25, according to the data.

Representatives from Bunge and The Andersons did not respond to requests for comment.

The movement of soybeans from Brazil’s record harvest to the U.S. could cut into the prices that U.S. farmers who have soybeans in storage bins receive for the crops they have been holding since the fall.

More shipments are expected in the coming months due to the price differential between U.S. and Brazilian supplies, said Michael Cordonnier, president of consultancy Soybean and Corn Adviser.

“The discount is like $2 a bushel coming out of Brazil,” Cordonnier said. “They say that is enough to pay for the transportation costs. The ports are working as fast as they can.”

Recent improvements in Brazil’s Amazon river ports and some facilities on the northern coast of the country also helped to facilitate shipments to the U.S.

Brazil, the world’s largest soybean producer and exporter, is also expected to sell massive volumes of soybeans to Argentina in 2023 to make up for a shortfall in its neighbor’s supplies due to a severe drought.

At least 15 ships chartered by global grain traders have sailed or will depart from different Brazilian ports carrying a combined 475,689 tonnes of Brazilian soybeans to Argentina, Cargonave data showed.

Brazilian soybean port premiums have fallen to historical lows amid lukewarm Chinese demand and a record soybean crop of above 153 million tonnes.

Source: Reuters