International Grain Future Freight (Jul.24-Jul.28)

Aug 3, 2017

Week 30, 2017 (Jul.24-Jul.28), 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.

With the nearby of August, the growth of U.S soybean entered the most important period. Although the planting area of soybean increased to 89.50 million acres from 83.40 million acres of last year, the weather in the period of growth was worse than last year and the good rate of soybean was less than last year. The data of U.S Agriculture Department showed, the good rate of U.S soybean was only 57% this week and it continuously decreased on the third week. The gap between the good rate of this year and 71% of last year kept widened.

In terms of the shipping market, the future freight rate kept on $35.88/ton on Jul.24(Mon.) and then decreased significantly. And it decreased continuously from Jul.25 to Jul.28 (Tue. to Fri.) and was closed at $35.13/ton on Jul.28 (Fri.) with a decrease of 2.09% from Jul.21 (the last release day of Week 29).