US Pacific Coast draws Asian soybean demand

Exports of US soybeans to Asia from the Pacific Northwest are soaring even as tight supplies and rising freight costs temper demand at grain terminals along the Gulf Coast, traders said on Wednesday.
Export elevators at the Gulf of Mexico, which handles about 80 percent of the corn, soybeans and wheat shipped from the United States, have also seen some soybean cargoes being channelled to Europe through the Great Lakes via the St. Lawrence Seaway.
"With the freight rate at the Gulf going up, they'll be cheaper," said a trader, referring to the Pacific Northwest.
"They've got better rail rates to the west, while rates are pretty horrendous going south," he said of transport costs.
"It seems to be the port of choice for Asia ... China and Japan," he said, adding that the landed price of soybeans, which includes ocean freight, shipped to Asia from the Pacific Northwest was cheaper than from the Gulf Coast.
Another trader said most grain export elevators in the Pacific Northwest were fully sold out for shipments from October through the end of November.
"They are pretty much booked out till December," he said, adding that export elevators had run out of capacity to load vessels.
On Tuesday, Cargill Inc sold 60,000 tonnes of US soybeans to a Taiwanese company for shipment from the Pacific Northwest, instead of the Gulf Coast.
A company official said shipment was scheduled for November 27 to December 11 and that the price was $1.8469 per bushel premium the CBOT January soybean contract on a cost-and-freight basis.
US traders said the sale price was about 17 cents a bushel cheaper than values at the Gulf. The difference will add up to $343,145 for a 55,000-tonne cargo.
Traders said ocean freight from the US Gulf to Japan had risen sharply from last week and was quoted at $60 per tonne, compared with $43 from the Pacific Northwest.
"Although the basis (price) for soybeans is higher at the PNW, the freight spread will make exports from there work," a trader said.
Another trader said PNW soybeans for first-half December shipment were priced at 85 cents a bushel premium the CBOT January, and at a 90-cent premium for last-half December.
That compared with a premium of 54 cents over the CBOT January from the Gulf for December shipment, he added.