International Grain Future Freight (Apr.17-Apr.21)

May 5, 2017

Week 16, 2017 (Apr.17-Apr.21), the International Grain Future Freight (IGF) reported the Panamax forward freight rate of South America-Tianjin route (soybean) from Jun. to Aug. in 2017, and the trend is shown in the chart below.

The progress of harvest of South America soybean was smooth and the harvest of Brazil soybean came to the end. The report of the Brazilian Vegetable Oilseeds Association said that the total yield of Brazil soybean in the 2016/17 year was predicted to 110.7 million tons which was 3.2% higher than the previous number predicted in March. And the harvest of Argentina soybean was carried out systematically. The progress of harvest was finished by 16.3%.

In terms of the shipping market, the future freight rate market increased with a fluctuation this week. From Apr.17 to Apr.19 (Mon. to Tue,), the future freight shocked narrowly. And then, it increased markedly on Apr.20 (Thu.). On Apr.21 (Fri.), the freight rate decreased slightly. The freight rate was closed at $30.38/ton with an increase of $1.00/ton or 3.40% from Apr.14 (the last release day of Week 15).