Dry Bulk FFA: Capesize Market Negatively Affected by Pressure on Freight Rates


Capesize FFA Commentary:

The woes in the physical market impacted further on paper rates today. Prompt contracts were hit the hardest as expected but more sellers emerged on cal 18 which traded at 12700 a few times. The sellers did take a breather in the afternoon session and the curve was well supported for the most part but there is still enough of a premium to spot to see further discounting of paper rates if the outlook doesn’t improve rapidly.

Panamax FFA Commentary:

It was a relatively choppy day on Panamax paper with prompt contracts seeing some small intra day volatility as Q3 traded $8700-9000 range and Q4 traded $9250-9600 range. We saw some resistance forming at the days highs post index and a few sellers sharpening their offers at the close. Overall activity was limited and jumpy as we await further clarity from the physical.

Supramax FFA Commentary:

Supramax paper opened on a softer note as Q4 was sold $8750 and Q3 $8350. However with rather limited activity levels the curve remained rather thin. After a slightly better index than expected some bid supported was seen once again as Q3 was paid $8450 and Q4 $8900. Have a good evening.

Handysize FFA Commentary:

Very quiet and unchanged day to the handysize paper. No reported trades. Have a good evening.

Source: Freight Investor Services

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