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Dry bulk FFA market: Turkeys - get out and vote!

Dry bulk FFA market: Turkeys - get out and vote!
It is the US Thanksgiving holiday next week and the prospect of a couple of days off must be as tempting as a turkey the size of a town car with lashings of cranberry sauce.

The absence of the US from trading might not be as keenly felt of that of Asia but any respite is welcome for market players. The bad news keeps coming. The Baltic Dry Index hit a record low on Thursday to close at 504, five points below its previous all-time level in February. Commodity markets are braced for another assault on prices if, as is widely expected, the US Federal Reserve raises rates in December. The word of the week, according to Twitter at least, is ‘bludgeoned’.

Unsurprisingly, capesize paper saw the balance of the year erode along with the index, though Q1 onwards continued to find support without making any significant moves. 

Good volumes were fixed again even as the index fell but rates are miserable.

Fronthaul routes were hardest hit but paper market was busier Thursday as both the flat price and time spreads traded. Rates drifted lower on December as did Cal 16 before rising slightly on the close.

The stability felt early in the week on panamax was short-lived as we traded lower with the gloomy physical market overshadowing any optimism. PMX index seems to be declining at a slower pace and buyers seem willing to pick up small clips.

Edging lower again Thursday though with a bit more caution as Pacific physical sentiment felt slightly better, but the tone remains cautious at best despite some late support at last done on the nearby and Cal16. Supramaxes continued to soften with bids slowly picked off and Dec and Cal 16 seeing some action but lower levels. Rates got crushed from the start Thursday with Dec and Cal16 pushed down further and the index coming off hard.

Little to be thankful for then, but roll on Christmas.

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