Dry Bulk FFA: Capesize Market On Correction mode
in Dry Bulk Market,International Shipping News 22/09/2017
Capesize FFA Commentary:
The Alkali metals are some of the most highly reactive elements in the universe. Iron Ore was also very volatile today with the DCE being slashed in the Asian morning causing the USD swap to also tank. Today the cape FFA market decided to act like an Alkali metal following the iron Ore lower despite the physical market continuing to go from strength to strength. Physical players looking at the FFA’s were left scratching their heads while paper traders were caught between wanting to be bullish and bearish at the same time. The ultimate result was that the FFA’s dropped down the entire curve although they found more support in the afternoon, again mirroring the IOS move. Despite ending the day down from yesterdays close it would be a brave call to suggest the party has stopped- maybe just the music is a little quieter. It wont take much for the dancing to begin again so watch this space.
Panamax FFA Commentary:
Further anxiousness over the uncertainty over the physical market and a change in sentiment on Capes prompted sellers to sharpen their ideas today which saw Oct and Q4 selling off to lows of $12100 and $11900 respectively, particularly after a disappointing index. We came off the lows at the close but with the hot pockets in both basins cooling off the tone remains cautious.
Supramax FFA Commentary:
Supramax paper opened on a softer note as we saw rates slip with October trading $11200 and the Q4 down to $11,100. But after another strong index with 10TC $156 and derived 6TC $107, rates ticked back up with Q4 reaching $11350 in the afternoon. Hopefully the positivity can continue tomorrow. Have a good evening.
Handysize FFA Commentary:
Another quiet day on the handysize paper with limited interest. Have a good evening.
