International Grain Future Freight(Sep.18-Sep.22)

Oct 9, 2017

Week 38, 2017 (Sep.18-Sep.22), 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 report of USDA showed that the good rate of soybean was 59% which was 60% in last week and it was 73% in the same period of last year. The North America soybean entered the harvest season and the harvest rate was 4% which was the same with last year. The Brazil crop belt was drought and the market was worried about the delay of soybean sowing.

In terms of the shipping market, the Panamax market was good. The future freight rate increased to a high position but it decreased on the weekend. It increased slightly from Sep.18 to Sep.20 (Mon. to Wed.) and then kept at $42.50/ton on Sep.21 (Thu.). Finally, the future freight rate decreased slightly on Sep.22 (Fri.) and closed at $42.44/ton with an increase of 2.26% from Sep.15 (the last release day of Week 37).