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July 08, 2014

08/07/2014: Rising shipping rates favour mear-market suppliers

An improved outlook for global bulk shipping rates spells bad news for grain exporters as they go into the latest sales campaign, with increased freight costs squeezing profit margins and adding to price competition in leading markets, reports Reuters today.

US wheat exporters look to be the hardest hit as ship owners prepare to crank up rates, expecting a clamour for their vessels. The biggest hike may be to the major Middle Eastern market - giving smaller producers, situated nearer the region, a price edge.

"When it comes to the grain season ex-US we believe this will be a strong season and we believe the same will be the case with the season ex-Black Sea," said Jens Ismar, chief executive of shipping group Western Bulk, says the report.

"This, combined with the fact that the world is still increasing its demand for raw materials, make us share the view of almost all analysts predicting a stronger market in the second half of this year."

The US Department of Agriculture has forecast that US wheat exports in the 2014/15 season will total 25.2 million tonnes, the smallest volume in five years. It expects the European Union to ship 28 million tonnes, its second-highest volume after a record 30 million in 2013/14.

For the full story go HERE.



 The Global Miller
This blog is maintained by The Global Miller staff and is supported by the magazine GFMT which is published by Perendale Publishers Limited.

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