International Grain Future Freight (May 7- May 11)

May 28, 2018

Week 19, 2018 (May 7- May 11), the International Grain Future Freight (IGF) reported the Panamax forward freight rate of U.S. Gulf-Tianjin route (soybean) from Oct. to Dec. in 2018, and the trend is shown in the chart below.

Soybean sowing in the United States accelerated its speed. The US department of Agriculture shows that soybean sowing rate, at present, is 15%, a bit higher than the expected level (14%), than that in the same time last year (13%), and than the average of nearly five years (13%). However, the soybean sowing in the US is not opstimistic. Some farmers are reluctant to sow soynean anymore because they are worried about its export to China. According to the former intention report of soybean sowing, the sowing area is predicted to be 88,982,000 acres, 1,160,000 acres (1.3%) less than that in the last year, 90,142,000 acres.

In terms of the shipping market, the freight is estimated to keep stable in the furture. It stablized at $41.81/ton from May 7 (Mon.) to May 9 (Wed.), and then went upwards on May 10 (Thur.), finally closing at $41.83/ton, 0.03% more than that on May 4 (the last release day of Week 18).

Source from : Tianjin Shipping Index