Industrial Minerals


Bumper grain harvest lifts mineral shipping rates

14 June 2012


Increasing corn trade supports Baltic Dry Index while iron ore and coal demand falls

Shipping rates for dry bulk minerals rose this week on bumper grain forecasts which increased the likelihood of more sea-borne trading.

 

Grain also provided support in a quiet week, with iron ore and coal still lacklustre on depressed Chinese demand despite falling prices.

 

The Baltic Dry Index (BDI) was 902 on 13 June compared with 872 last week. Capesize, Panamax, Supramax, and Handymax were 1196, 1004, 1018, and 627 respectively.

 

Supporting the BDI was prospects of increased grain and corn importing and exporting due to a decent global harvest. Agricultural commodities are often transported in smaller dry bulk vessels so is in direct competition with industrial minerals which...