Panamax Rise Helped By Latin American Grain

摘要

In each of the last four years the run-up to the Latin American grain export season has been characterised by a marked rise in Panamax earnings (see chart below). Even when average Panamax earnings fell to a 22-month low in early February, the "grain effect" on market expectations was one of the factors contributing to the contango in the short period and FFA markets. While it is too simplistic to attribute the Panamax rally of the past two weeks entirely to chartering ahead of the peak Latin American grain export season, it has been a positive influence.