With the Chinese giving new waivers on US soybeans, the Panamax market remains muted, reports Freight Inventor Services.
At this point it seems more of a goodwill gesture as the purchasing commitment is only between two to three million tons.
Change in freight dynamics
With soybean prices only up 5 cents, it would suggest that the quantity is unlikely to change the market dynamics in freight. U.S. rhetoric remains unchanged regarding intellectual property theft and state subsidies.
This implies that the two nations remain deadlocked and a trade deal looks unlikely at this point.
Panamax sector toned down
Further issues lie ahead for the Panamax sector as Chinese swine flu remains a major issue, Cofco’s soy exports from Brazil have dropped 1.5 million tons in 2019 as demand for crushing in China has declined due to the outbreak putting further pressure on freight prices.
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Source: Freight Inventor Services