International Grain Future Freight (Jul.3-Jul.7)

Jul 14, 2017

Week 27, 2017 (Jul.3-Jul.7), 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, and the trend is shown in the chart below.

The planting intention report of U.S Agriculture Department increased the planting area of soybean and predicted the planting area in 2017 year would be 89.513 million acres which was 6.085 million acres more than last year and created new historical record. The increased planting area laid the foundation of good harvest of U.S soybean preliminary. And the influence of weather factors and crops rating was more and more significant. The increasing temperature in Middle-West area could bring some pressure to the crops in the key growth period.

In terms of the shipping market, the future freight rate market kept increase at the beginning of this week and increased 1.45% in the first two release days. Then it kept at $34.94/ton from Jul.5 to Jul.6 (Wed. to Thu.). Finally, it increased slightly and was closed at $35.06/ton on Jul.7 (Fri.) with an increase of 1.81% from Jun.30 (the last release day of week 26).