Barge shipments of Brazil soy bound for U.S. Midwest crushers -trade
* Up to 1.2 mln tonnes of Brazil beans bound for U.S.
* Traders pricing Brazil cargoes at discount after China defaults, cancellations
* Soy also imported from Canada but U.S. supplies to remain tight
By Michael Hirtzer
CHICAGO, May 8 (Reuters) - 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.
One processor owned by CGB Enterprises Inc in Mount Vernon, Indiana, on the lower Ohio River paid 30-35 cents per bushel above Chicago Board of Trade soybean futures for more than 10 barges (about 14,000 tonnes) of Brazilian soybeans for arrival in late May or early June, four U.S. cash sources said.
That is about 25 cents below bids from processors in the state who do not have access to the river market. Continuación...