Ocean Freight Comments
Transportation and Export Report: Jay O’Neil, O’Neil Commodity Consulting: Dry-bulk markets showed some signs of life this week with the Capesize sector leading the way higher on improved iron ore demand. Maybe the bleeding has stopped, and the market has hit bottom? Now we will have to see if freight markets can cautiously climb higher. Relevant for grain shipments from the U.S. Gulf, is the fact that much of the Illinois River system will be shut down for lock and dam maintenance from July-September 2020. This will not stop grain sales and vessel loadings out of New Orleans, but it will create a substantial reduction in barge grain availability and will likely have a bullish impact on corn and Soybean basis levels at the U.S. Center Gulf.
