Week 20, 2016 (May 16-May 20), the International Grain Future Freight (IGF) reported the Panamax forward freight rate of US Gulf-Tianjin route (soybean) from October to December in 2016, and the trend is shown in the chart below.

American spring soybean sowing has been delayed due to the wet weather. Cold and rainy weather conditions encouraged farmers to plant soybean instead of corn. The soybean price increased during last few month, which inspired farmers to extend the soybean planting acreage. According to the report from United States Department of Agriculture early this week, the present U.S. soybean planting rate is 36%, lower than the market expectation, but 32% higher than average of five years.

In terms of the shipping market, the forward market demand presented an overall uptrend. IGF got rise from May 17 (Tue.) to May19 (Thur.), increasing $0.88/ton in total. On May 20 (Fri.), IGF closed at $ 25.38/ton, increasing 3.59%, compared with May13 (the last release day of Week 19).