International Grain Future Freight (May.2-May.5)

May 11, 2017

Week 18,2017 (May 2-May 5), the International Grain Future Freight (IGF) reported the Panamax forward freight rate of U.S. Gulf-Tianjin route (soybean) from Oct. to Dec. in 2017 four times because of the Labor Day holidays, and the trend is shown in the chart below.

The good harvest of South America soybean was settled and the focus of market transferred to American soybean. In May, the U.S. soybean came into sowing season and the weather factor would be very important for the sowing and early growth of soybean. The heavy rain in the middle-west and south of America and the north of delta had become flood. But the report of U.S. Department of Agriculture showed the plantation of soybean was 10% and it was 7% in last year and the five-year average was 7%.

In terms of the shipping market, the future freight rate was $34.44/ton on May 2 (Tue.). From May 3 to May 5 (Wed. to Fri.), the future freight decreased slightly. The freight rate was closed at $34.00/ton with a decrease of $0.44/ton or 1.27% from the beginning of this week.