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

May 28, 2018

Week 20, 2018 (May.14- May.18), 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 accelerates its speed because of moderate climate. The US department of Agriculture shows that soybean sowing rate, at present, is 35%, higher than the expected level (30%), than that in the same time last year (29%), and than the average of nearly five years (26%). And soybean germination rate is 10%, also higher than that in the same time (7%) and than the average of nearly five years (6%). Besides, the US department of Agriculture says that the sowing area is predicted to be 89,000,000 acres, 1,100,000 acres less than that in the last year, 90,100,000 acres.

In terms of the shipping market, the freight experienced a slight fluctuation. On May 15 (Tues.), it increased $0.16/ton and got to $41.89/ton, stabilizing until the next release day. On May 17 (Thur.), it went downwards and finally closed at $41.76/ton, 0.15% less than that on May 11 (the last release day of Week 19).

Source from : Tianjin Shipping Index