International Grain Future Freight (Aug.14-Aug.18)

Aug 25, 2017

Week 33, 2017 (Aug.14-Aug.18), the International Grain Future Freight (IGF) reported the Panamax forward freight rate of U.S. Gulf-Tianjin route (soybean) from Jan. to Mar. in 2018, and the trend is shown in the chart below.

The newest report of USDA showed the good rate of U.S soybean was 59% and it was 60% in last week and 72% at the same time of last week. Although the good rate decreased, the blooming rate and podding rate were higher than the same time of last year which was good for the yield of soybean. The weather would be cooler and there would be some rain and the weather condition was good for the pod filling.

In terms of the shipping market, the Panama ship market was hot and the future freight rate increased. It increased slightly from Aug.14 to Aug.15 (Mon. to Tue.) and increased rapidly from Aug. 16 to Aug. 18 (Wed. to Fri.). Finally, the future freight rate was closed at $38.00/ton with an increase of 6.67% from Aug.11 (the last release day of Week 32).