The outlook for US grain cargoes continues to be bullish for smaller dry bulk ships as US officials raised estimates for US grain exports in the current harvest year.
In its October report on world supply and demand estimates, the US Department of Agriculture raised estimates for exports of wheat, corn and soybeans over its September forecasts. The raised forecast should cheer owners of supramax and handysize bulkers, who pinned hopes on a strong US grain export season.
US wheat exports for the current harvest year are now projected to be 26.5 million tonnes, up 700,000 tonnes from the September forecast. The October projection would put US wheat exports up over 25% from last year’s harvest.
US corn exports saw their forecast rise 1.3 million tonnes from the September report to reach 56.5 million tonnes for the current harvest year, a 13% jump from year-ago levels. Soybeans exports are expected to total 55.1 million tonnes for the current harvest year, a 4% increase from a year ago.
Rates for fronthaul voyages out of the US were among the few gainers in overall dry bulk rates. The Baltic Exchange’s assessment for Tess 58-type supramaxes on the US-to-China trip was up $22 to $12,125 per day, while the US-to-Europe transit rose $31 to $9,072 per day. The Baltic’s broad average of supramax rates fell $12 to $7,066 per day.
Handysize vessels on the US Gulf-to-Europe route were also rose to $6,062 per day, while the Baltic’s index of overall handysize rates fell slightly to $5,912 per day.
