Dry Bulk FFA: Capesize Market Sees Light at The End Of the Tunnel
Capesize FFA Commentary:
A firm day for the FFA market which could be viewed in the samemanner of a dog chasing its tail. Owners pulled their rates north for spot and period citing a firmer paper market while buyers of paper were claiming this was justified as period was moving higher. The index saw a decent rise but even so the paper premiums continued to increase. There is now a steep carry from spot to Q2 and from Q2 to Q3 etc and owners can see from the forward curve some light at the end of the tunnel. We could be in for an interesting summer. Have a good evening.
Panamax FFA Commentary:
It was a relatively volatile day on Panamax paper with some aggressive selling witnessed early on as we saw Mar and Q2 sold off to intra day lows of $8150 and $8875 respectively which intern dragged Q34 down to $8800. However, after a slightly better than expected index and with talk of some improved prompt activity N ATL / ECSA as well as continued Pac strength we pulled back the mornings losses and added some. With optimism buoyed further by the rally on Capes we saw new highs with Mar at $8750 and Q2 at $9450 dragging Q34 back up to $9250 with the tone positive at the close.
Supramax FFA Commentary
After weaker start to the day with rates slipping early as we came under pressure from some aggressive offers with Q2 trading $9150 and Q234 package $8900. We gradually saw a few more bids come in as the day progressed. After index of $196 there was a burst of excitement with Q2 being paid $9400, how ever we come off from the days highs as we approached the close. Have a good evening.
Handysize FFA Commentary
Handysize paper had a more positive feel but lacked any real activity once again. No reported trades. Have a good evening.
Source: Freight Investor Services (FIS)